Delphi Posts $226M Loss in November
Friday December 29, 1:27 pm ET
Delphi Posts $226 Million Loss in November, Wider Than $54 Million Reported in October
NEW YORK (AP) -- Bankrupt auto parts maker Delphi Corp. said Friday its loss in November widened to $226 million from $54 million in October.
The Troy, Mich., company made the disclosure as part of an unaudited monthly operating report it is required to file with the U.S. Bankruptcy Court for the Southern District of New York.
Delphi had $1.33 billion in revenue in November, with $752 million, or 55 percent, coming from General Motors Corp., the country's largest carmaker that was also Delphi's parent until a 1999 spinoff.
Delphi filed for bankruptcy protection in October 2005 and is trying to cut operating costs as part of a restructuring plan. The company struggled as North American carmakers cut production, burdened by uncompetitive labor costs and high commodity prices.
On Dec. 18, a group of private equity firms led by Appaloosa Management LP and Cerberus Capital Management LP said they would spend as much as $3.4 billion to help the company out of bankruptcy. A competing offer, from Highland Capital Management LP, was entered a few days later, pushing the refinancing offer up to $4.9 billion.
Analysts have said the interest in bailing out Delphi indicates there is hope the company can remain a viable business after it emerges from court protection.
Delphi said its agreement with Appaloosa, which owns about 9 percent of the company's stock, would allow it come out of bankruptcy by the second quarter of 2007 and includes a reorganization framework agreement signed by Delphi, the investors and GM.
Any deal requires approval of the federal bankruptcy judge in New York, where a hearing is scheduled for Jan. 11, according to the filing Friday.
In the year-to-date period through the end of November, Delphi's loss in 2006 totaled $4.66 billion on revenue of $16.06 billion. Expenses reached $20.69 billion, including $2.93 billion for special attrition program charges for U.S. employees. That posting comes from Delphi's offer to pay workers represented by two labor unions to take early retirement.
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