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28th
January 2008 - Delphi's Plan
of Reorganization Confirmed by Bankruptcy Court
Delphi Corporation
announced today that the Honorable Judge Robert D. Drain of the United
States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court") entered an order today confirming the First Amended
Joint Plan of Reorganization, As Modified (the "Plan") of Delphi
Corporation and certain of its affiliates. The Court ruled that Delphi
had met all of the statutory requirements to confirm its Plan.
"Today's confirmation
represents one of the most significant events of a very complex business
reorganization to be completed during a challenging time in the
automotive industry," said Robert S. "Steve" Miller, Delphi's executive
chairman. "The industry-changing accomplishments contemplated by this
Plan could not have been achieved without the hard work and continued
focus of our employees, the support of our customers, suppliers and
other stakeholders, and the dedication of our professionals."
Delphi plans to emerge
during the current calendar quarter following the syndication and
closing of approximately $6.1 billon of exit financing facilities and
satisfaction of other conditions to the Effective Date of the Plan
including completing the rights offerings provided for under the Plan,
closing of the Investment Agreement with the Plan Investors and
consummation of the Global Settlement Agreement with General Motors
Corp.
"Delphi has
substantially achieved all of the objectives that we identified in our
2006 transformation plan," said Rodney O'Neal, Delphi's CEO and
President. "Since the chapter 11 cases were filed in late 2005, we have
negotiated amended collective bargaining agreements with our U.S. unions
resulting in more competitive U.S. operations; entered into
comprehensive settlement and restructuring agreements with General
Motors; made substantial progress in divesting or winding down
facilities and business lines that are not core to Delphi's future
plans; implemented initiatives in our organizational cost structure to
achieve important cost savings and rationalize our salaried workforce to
competitive levels; and obtained pension funding waivers from the
Internal Revenue Service which will permit Delphi to fund its defined
benefit pension plans following emergence from chapter 11."
Delphi earlier
announced broad-based stakeholder support for the Plan. Eighty-one
percent of all voting creditors aggregated across classes voted to
accept the Plan. Of the total amount voted by all general unsecured
creditor classes, 78% voted to accept the Plan. More than 70% of the
ballots cast and 70% of the total dollar amount voted by Delphi's senior
note claims, TOPrS claims, and all other claims (including trade claims)
segments each voted separately to accept the Plan. One hundred percent
of the ballots cast in the GM and MDL classes voted to accept the Plan.
Of the approximately 217,000,000 shares voted by shareholders, 78% voted
to accept the Plan. While one class each in two lower tier Delphi
subsidiaries did not accept the Plan, the Bankruptcy Court confirmed the
Plan over the vote of the two subsidiary dissenting classes holding that
Delphi was entitled to confirm and implement the Plan for several
reasons including based on "new value" contributed by Delphi to the
subsidiaries.
ABOUT DELPHI'S CHAPTER
11 CASE
Delphi's Chapter 11
cases were filed on Oct. 8, 2005, in the United States Bankruptcy Court
for the Southern District of New York and were assigned to the Honorable
Robert D. Drain under lead case number 05-44481 (RDD).
This press release
shall not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state.
FORWARD-LOOKING
STATEMENTS
This press release, as well as other
statements made by Delphi may contain forward-looking statements that
reflect, when made, the Company's current views with respect to current
events and financial performance. Such forward-looking statements are
and will be, as the case may be, subject to many risks, uncertainties
and factors relating to the Company's operations and business
environment which may cause the actual results of the Company to be
materially different from any future results, express or implied, by
such forward-looking statements. In some cases, you can identify these
statements by forward-looking words such as "may," "might," "will,"
"should," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential" or "continue," the negative of these terms and
other comparable terminology. Factors that could cause actual results to
differ materially from these forward-looking statements include, but are
not limited to, the following: the ability of the Company to continue as
a going concern; the ability of the Company to operate pursuant to the
terms of the debtor-in-possession financing facility and to obtain an
extension of term or other amendments as necessary to maintain access to
such facility; the terms of any reorganization plan ultimately
confirmed; the Company's ability to obtain Court approval with respect
to motions in the chapter 11 cases prosecuted by it from time to time;
the ability of the Company to prosecute, confirm and consummate one or
more plans of reorganization with respect to the chapter 11 cases; the
Company's ability to satisfy the terms and conditions of the EPCA; risks
associated with third parties seeking and obtaining Court approval to
terminate or shorten the exclusivity period for the Company to propose
and confirm one or more plans of reorganization, for the appointment of
a chapter 11 trustee or to convert the cases to chapter 7 cases; the
ability of the Company to obtain and maintain normal terms with vendors
and service providers; the Company's ability to maintain contracts that
are critical to its operations; the potential adverse impact of the
chapter 11 cases on the Company's liquidity or results of operations;
the ability of the Company to fund and execute its business plan
(including the transformation plan described in its periodic filings
with the SEC and its filings with the Bankruptcy Court ) and to do so in
a timely manner; the ability of the Company to attract, motivate and/or
retain key executives and associates; the ability of the Company to
avoid or continue to operate during a strike, or partial work stoppage
or slow down by any of its unionized employees or those of its principal
customers and the ability of the Company to attract and retain
customers. Additional factors that could affect future results are
identified in the Company's Annual Report on Form 10-K for the year
ended December 31, 2006, including the risk factors in Part I. Item 1A.
Risk Factors, contained therein and the Company's quarterly periodic
reports for the subsequent periods, including the risk factors in Part
II. Item 1A. Risk Factors, contained therein, filed with the SEC. Delphi
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events and/or otherwise. Similarly, these and other factors,
including the terms of any reorganization plan ultimately confirmed, can
affect the value of the Company's various prepetition liabilities,
common stock and/or other equity securities. Accordingly, the Company
urges that appropriate caution be exercised with respect to existing and
future investments in Delphi's common stock or other equity interests or
any claims relating to prepetition liabilities
Source: Delphi Corporation Press Release |
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