Delphi Automotive Plc fka DLPH

[joey13]

Thursday, March 12 2009
New York judge rules in Delphi's favor: Hearing on stay set for next week

Mar. 12
The Delphi Salaried Retirees Association lost another round in U.S. Bankruptcy Court Wednesday when the judge affirmed his original decision to allow the company to terminate health and life insurance benefits.

Judge Robert Drain, with the U.S. Bankruptcy Court for the Southern District of New York, made final his preliminary decision issued Feb. 24 to allow Delphi Corp. to terminate health and life insurance benefits for up to 15,000 salaried retirees effective April 1

We were disappointed, but we expected it, said Milton Beach, spokesman for the DSRA. This is Delphi's judge.
The DSRA filed a motion Tuesday seeking a 90-day stay of Drain's order until a pending appeal could be heard by the U.S. District Court in New York.

Drain will hear the motion for a stay next Tuesday.

Drain based his decision that Delphi had the right to terminate the benefits on a Detroit case Sprague v. General
Motors, he said.

Dennis Black, coordinator with DSRA, said it was a bad day for the salaried retirees."In a nutshell, we haven't gotten anything," Black said. "We were hoping to get an extension. We were negotiating with Delphi trying to get an agreement to transition to a group health plan we're trying to create."

Black encouraged retirees who can afford it to continue with Delphi's insurance plan until the DSRA can establish its own group.

Black said the retiree committee appointed to determine if any of the salaried benefits were vested did a good job in gathering data in a short period of time.

There was no doubt during an 11-year period from 1974 to 1985 there were promises of lifetime benefits, he said. Black said normally a person is considered vested in insurance and retirement plans after 10 years.

"The judge keeps going back to the Sprague case," Black said. "Legal law requires that you follow the law in the 2nd District New York and not the 6th District Detroit. The district rulings are different. Judge Drain has no interest in that legal argument."

Black said the DSRA will appeal Drain's two motions allowing Delphi to terminate benefits.

"I would speculate that we're prepared to take this to the U.S Supreme Court," he said. "Different courts have differing rulings and the Supreme Court is the only one that can make a final decision.

"We lost some more battles, but we continue to fight the war."
>
The DSRA is trying to bring in the rest of the automotive groups in the country to include GM, Ford and Chrysler.

"The name of the game is to shed their obligations," Black said of the decision to terminate benefits.

Delphi, which became a spin-off company from General Motors in 1999,iled Chapter 11 bankruptcy in 2005.

By terminating the benefits, Delphi expects to realize a savings of $200 million through 2010 and be able to write-off $1.1 billion from its long-term obligations.

[Prodigy]

Nice rise this morning with news of GM buying the steering division.

[odinpinetree]

FEBRUARY 25, 2009 Delphi Wins Approval to End Retiree Benefits
http://online.wsj.com/article/SB123550401655162009.html?mod=article-outset-box
Delphi Corp., the largest parts supplier to General Motors Corp., won court approval to terminate health benefits for thousands of retired salaried employees after arguing the move is critical to keeping its slow-going bankruptcy reorganization afloat.

Ending the benefits to about 15,000 people allows the auto supplier, which has been operating under Chapter 11 protection since late 2005, to wipe out more than $1 billion in liabilities and $70 million in annual cash costs.

A U.S. bankruptcy judge decided in Delphi's favor at a hearing Tuesday over the objections of about 1,600 retirees, who said in court filings that the auto-parts company can't unilaterally terminate their benefits. The retirees said that GM, Delphi's former owner, promised lifetime medical coverage to many employees.

In making his decision, Judge Robert Drain of the Southern District of New York said "every dollar counts" for Delphi. The company, spun off from GM in 1999, is scrambling to finance its exit from bankruptcy court.

"We were very aware this would be a significant hardship imposed on all our retirees," Delphi Executive Chairman Steve Miller said at the hearing.

In recent years, escalating health-care costs have been a key reason for the deterioration of the domestic auto industry. Last summer, GM said it no longer would provide health-care benefits to salaried retirees over the age of 65. Ford Motor Co. has made its white-collar retirees pay higher costs for medical care, while Chrysler LLC eliminated medical benefits for its retired salaried workers in 2006. Retired union workers at the Big Three, meantime, have retained their health-care benefits.

Currently, the United Auto Workers union is negotiating with GM and Chrysler over how they will fund health-care benefits for blue-collar retirees. On Monday, the UAW struck a deal with Ford allowing it to fund half of its future cash obligations to a health-care trust by using company stock. GM and Chrysler are negotiating terms with the UAW believed to be aimed at more drastically cutting the companies' cash obligations to their retiree health-care funds.

Both GM and Chrysler are lobbying for additional federal bailout funds on top of the $17.4 billion the White House granted them in December. Without additional funds, both could be forced to file for bankruptcy protection. If that were to happen, medical benefits for retired UAW members and spouses -- long considered to be among the most generous in the entire U.S. manufacturing sector -- could be significantly cut.

Delphi's move to terminate the retiree benefits comes as its bankruptcy reorganization has come under growing pressure. The company has warned it may not have enough money to pay back its $4.3 billion bankruptcy loan and $1.6 billion it owes GM.

A key issue facing Delphi centers on a handful of money-losing plants that the supplier runs strictly to build parts for GM vehicles in the U.S. Those factories were once owned by GM, and the auto maker is now looking to take them back so it can better control the supply of parts given the uncertainty surrounding Delphi.

Mr. Miller said in court that talks between the two companies are ongoing, but it is "far from certain" that GM will end up taking over the Delphi plants.

GM has recently taken action to move away from troubled suppliers with which it had critical sourcing contracts. In one case, GM pulled its tooling for parts needed for the coming Chevrolet Camaro sports car from a supplier that had filed for bankruptcy protection.

[Prodigy]

Gap filled..here's hoping for it to turn around from here.

[d_whick]

GM is sort of recovering from today's low, should this follow?

[welderfred]

If this gets some good news going to take off like a rocket

[dylyo]

http://www.daylife.com/quote/0evyaDVdy6b2G

[d_whick]

it doesnt take a lot to move it

[Prodigy]

Closing gap at .05 then back up?

[freddy80]

yeah that would be great to see again. Didn't it actually reach $4? I think I sold some right before it hit that.

[welderfred]

Might be real lucky to get in this in the 5 or 6 cent range imo

[welderfred]

Seen this go over 3 bucks while in BK so it is hard to say . Could go wild imo

[purdue]

It will be interesting to see how this plays out, especially with Gm involved.

[welderfred]

This train is pulling out of the station

[purdue]

This could go over .10-.12 today with this news.

[stockmarketmadness]

NEWS!!!


GM said to be in talks to reclaim Delphi plants
Monday February 9, 8:45 am ET
General Motors said to be in talks with Delphi to take back some plants


DETROIT (AP) -- A person familiar with the talks says General Motors is discussing taking back some factories from its former parts division, Delphi Corp.
Troy, Michigan-based Delphi has been operating under bankruptcy protection for more than three years and like many suppliers is struggling with the shrinking U.S. auto markets.

The person says the talks between Detroit-based General Motors Corp. and Delphi have been under way for several weeks. The person did not want to be identified because the negotiations are private.

Delphi plants make thousands of key parts for GM vehicles including its top selling pickup trucks, the Chevrolet Silverado and GMC Sierra.


http://biz.yahoo.com/ap/090209/na_us_gm_delphi.html?.v=1

[faust357]

Does anyone know how many of the company's common shares are held in the pension fund?The pension fund is a big factor in this B/K;seems to me if the fund had alot of shares,the management would be very averse to cancelling the commons....

[dylyo]

woops wrong board


meant for VC

[dylyo]

I got back in yesterday at .218


I like the RSI is down to 30 now

and they have not gone BK still


it may be ready for a run out of the 20's?


VC and AXL were both mentioned as troubled parts suppliers

AXL is up 25% today

and both have not gone BK

[TruthLayFallen]

I made a great gain off of this one, still have half of my shares in, this stock is going back it's not finished yet. I'm expecting another nice gain by the end of the week, buying some more at the lowest I can get for the day today.

[dylyo]

more selling off

it may be a rough week

but also possible to flip the dips if timed right

[typicalguy]

Why the plunge today?

[dylyo]

RSI is basically a volume indicator

and helps one to see if a stock is reaching its limit of available shares

usually a high limit means a sell-off is coming
'
which is why I sold last Friday

but the PPS can shoot right back up depending on your support base - or buying support

so far DPHIQ has had very nice support since the new year started

it is all speculation at this point - but people are desperate nowadays

[casa]

I'm new to this ... what is RSI? And what makes it low or high?

[dylyo]

I checked the chart for this one

the RSI is kind of high so I expect some selling off soon

[chartman2000]

Can't believe I missed this one I remember looking at it when it was at .03. Oh well you can't pick em all.

[dylyo]

up

15

%

again

and still no pumps


I like this stock

[dylyo]

we are up again with a lot of speculation pushing this up


just the fact that this board is dead tells me it is a good stock to flip for now


its when the shorts and pumpers show that things seem to die out

[dylyo]

http://www.reuters.com/article/CHMMFG/idUSN2129513420081022

is this a factor today?

the dow is down 170+ points and GM/DPHIQ are both up


maybe this is giving some reason to speculate that things are looking better?


I am really not sure what is going on

[welderfred]

Up again today , hang on for the ride .

[dylyo]

my measly 40k shares hope so!

[welderfred]

Up again today , looking for the same tomorrow . This could go along way .

[welderfred]

It could be a nice little up trend for awhile . I think it was at the bottom at .02 . Has went as high as 3.84 while being bankrupt.

[PremierStocks]

that is a fact...it can happen

[typicalguy]

I am new to investing and have invested in DPHIQ. If they get out of BK, hopefully they will NOT wipe my shares clean. But from what I know, that this can happen.

[welderfred]

I was in this a year ago or so and it went to 3.84 while bankrupt . I think it is headed up , was at the bottom .

[dylyo]

well I made a buy in haste

too bad for me


I forgot about the 500 mil common pool and also the fact that this is another BK stock with no post BK support mentioned by upper management

if they dont give it support then why should any big buyers come in and buy up the shares?

which tells me it will die as fast as it went up this week

I hope not

at least not until my 3 days comes in so I can sell

[welderfred]

Up again today , this thing is going to take off soon .

[welderfred]

AMERICAN BULLS BUY CONFIRMED 12-29-08

[welderfred]

IMO there might be a few eyes on this to make a run real soon

[welderfred]

Could be ready to make a run

[welderfred]

AMERICAN BULLS POSTED A BUY 12-26-08

[bell345]

Have not been follow the details here. What makes people think that they will get anything, as 98% of the time bankruptcy shares are canceled?

[welderfred]

Up a little each day , will be somewhere soon .

[welderfred]

Have any thoughts on what this is going to do . Was in it before , I can only believe it is on its way up .

[joey13]

Does anyone know when this expected to exit BK?

[GodsWatchingYou]

I.m out as of today at .08
I was blessed with a .03 profit per share.

Be blesed all

[pinoypaddy]

Off course trade carefully with 'Q'.

Greed is enemy of sucess!

[pinoypaddy]

I guess it's up to the board decision. For sure we will see future sysmbol without 'Q'. Will they be generous to transfer the existing shares to the new one? I guess, they wil do that if there's good value on this shares. Only time will tell. But for now, the chart is up!

Note, this is just my opinion.

[joey13]

The common shares will they be cancelled??????