Delphi is scheduled to meet on Monday in Washington DC with creditors, the government’s auto task force and General Motors to discuss the firm’s reorganisation, a lawyer for the bankrupt auto parts maker said.
Go deeper with GlobalData
The meeting will cover the major issues of the reorganisation plan for the company, which has been in bankruptcy since 2005, lawyer Jack Butler, of Skadden, Arps, Slate, Meagher & Flom, told Reuters.
He described the meeting as “very good news” for parties in the bankruptcy by establishing a consensus on the timetable for developing a plan, rather than having that timetable determined by Delphi.
The move came after the treasury auto task force filed a motion on Wednesday seeking to block a GM-Delphi agreement that would have provided the parts maker access to US$150m, contingent on Delphi selling its steering business to GM.
Treasury representatives at a bankruptcy court hearing on Thursday said they hoped Monday’s meeting would resolve the issues between GM and Delphi.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe treasury has the right to object to large GM transactions as part of the $13.4bn emergency loan extended to the automaker at the end of 2008, Reuters noted.
“There’s a vibrant process we have at the table now. The key parties are at the table and the key issues identified,” said Butler. “This is very good news for Delphi and the stakeholders.”
According to the report, the judge also approved amendments to Delphi’s bankruptcy funding and established 17 April as the new deadline for the company to file a modified reorganisation plan after the previous deadline expired on Thursday.
