8th April 2008 - Delphi Comments on Plan of Reorganization Closing Efforts

Delphi announced on 4 April 2008 that although it has met the conditions required to substantially consummate its First Amended Joint Plan of Reorganization, including obtaining $6.1 billion of exit financing, Delphi's plan investors refused to participate in a closing that was commenced but not completed earlier today and refused to fund their investment agreement with the Company. Instead, the Plan Investors delivered a written notice purporting to terminate the Equity Purchase and Commitment Agreement and alleged breaches of the EPCA that the plan investors assert would entitle them to payment of additional compensation under the EPCA from Delphi.

"Our formal closing process commenced today, and all of the other required parties for a successful closing and emergence from Chapter 11 -- including representatives of our new exit lenders, General Motors Corporation and our Joint Statutory Committees -- were present and prepared to move forward this morning," said John Sheehan, Delphi vice president and chief restructuring officer. "We are extremely disappointed that our Plan Investors have taken the position that they are not obligated to fund their plan investment commitments to Delphi and instead have chosen to walk away from the company and its stakeholders. We are prepared to pursue actions that are in the best interests of Delphi and its stakeholders. These actions will be overseen by a committee of our Board of Directors, and will not impact the successful operation of the company. We are very appreciative of the strong financial support from our exit financing lenders and GM, and we look forward to continuing to work with them and our other stakeholders as we move forward with our goal of emerging from Chapter 11 as soon as practicable."

The $6.1 billion in exit facilities that were made available to the company in connection with today's closing were successfully arranged by J.P. Morgan Securities, Inc. and Citigroup Global Markets, Inc., in accordance with prior orders entered by the United States Bankruptcy Court for the Southern District of New York. The Plan Investors that did not fund the investment of up to $2.55 billion in preferred and common equity under the Equity Purchase and Commitment Agreement agreed to in 2007 include affiliates of lead investor Appaloosa Management L.P.; Harbinger Capital Partners Master Fund I, Ltd.; Merrill Lynch, Pierce, Fenner & Smith Inc.; UBS Securities LLC; Goldman Sachs & Co.; and Pardus Capital Management, L.P.

"We have accomplished the commitments in our restructuring plan," said Delphi CEO and President Rodney O'Neal. "We are proud of the fact that we have never disrupted our customers' operations during this reorganization. We also have kept the pipeline full of exciting technologies and products to meet the challenges facing our customers -- to make vehicles safer, greener and more connected to consumers' lives than ever before."

Delphi's transformation initiatives include:

"While our Plan Investors' actions are very disappointing, it is important that we clearly distinguish their actions from the company's achievement of its transformation objectives," O'Neal said. "Our unwavering commitment to our customers, suppliers, employees and other stakeholders will remain at the forefront as we move forward with our Chapter 11 cases, and we are committed to emergence as soon as practicable."