Delphi on Monday said it had formally terminated and equity purchase and commitment agreement and related plan framework support agreement it entered into last December 2006 with Cerberus Capital Management, and other plan investors.
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The company had announced last 19 April that it did not expect that Cerberus would continue as a plan investor so the announcement was not a surprise. Cerberus subsequently bought Chrysler
Delphi also said its expects to enter into new framework agreements with plan investors later this month following a 16 July board meeting.
“These developments are not expected to prevent Delphi from filing its plan of reorganisation and related documents with the bankruptcy court prior to the current expiration of the company’s exclusivity period or emergence from Chapter 11 reorganisation this year,” the parts maker said in a statement.
On June 29, Delphi filed a motion seeking bankruptcy court approval on 19 July of a ratified UAW-Delphi-GM agreement and is currently in discussions with its second and third largest US which it hopes to conclude as soon as possible.
The company also said its discussions with GM on a comprehensive settlement agreement had entered the documentation phase and that it expected that a settlement with GM would be incorporated into the company’s plan of reorganisation rather than filed with the bankruptcy court for separate approval.
