![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Friday, January 28, 2011 5:12:35 PM
(Mar 17, 05:37 AM)
By Jason Roberson, Detroit Free Press
Mar. 17--One of Delphi Corp.'s largest shareholders sent a letter to the board of directors claiming that the company's bankruptcy was a premeditated sham for Delphi CEO Steve Miller and his management team to get rich, according to documents filed Thursday with the Securities and Exchange Commission.
David Tepper, president of Appaloosa Management LP, a $3-billion hedge fund investment firm based in Chatham, N.J., is demanding that Delphi's board help establish an equity committee to protect shareholders, and schedule an annual shareholders meeting, which had been suspended, so up to four new directors can be elected.
Tepper said Delphi's financial filings before bankruptcy do not reflect a cash crisis. There is no indication, Tepper said, of any damaging event between Aug. 2 -- when Delphi paid dividends to shareholders -- and Oct. 8 -- when the nation's largest auto-parts supplier filed for bankruptcy.
The Appaloosa fund bought its stake two days after Delphi declared bankruptcy, reports Bloomberg.
Tepper, 48, said the crux of his beef against Delphi's management is in the attempt to approve a controversial program to retain top executives. The compensation plan, designed to keep Delphi's management team from leaving and valued at hundreds of millions of dollars, has been reduced to $38 million.
"This is an outrage," said Tepper in an interview with the Free Press. "What the hell were they thinking?"
Delphi spokeswoman Claudia Piccinin declined to comment on Tepper's claims, saying that it would be inappropriate to speak before a March 21 bankruptcy hearing where the request to form the equity committee will be aired.
Jim McTevia, a managing member of turnaround consulting firm McTevia & Associates LLC in Bingham Farms, 'said he believes Delphi's board acted in the best interest of shareholders.
"It is my hunch that if Delphi had not filed for Chapter 11, shareholders of the company would be at greater risk now," said McTevia, a bankruptcy expert, who also testified in a similar accusation involving the 1982 bankruptcy of DeLorean Motors.
"Delphi was bleeding and was running out of money," McTevia said.
McTevia said bankruptcy was the only way Delphi could have bought enough time to fix its problems without the pressure of fulfilling its labor obligations. Bankruptcy, McTevia said, allowed Delphi to bring GM and the UAW to the negotiating table.
Tepper, who in 2004 donated $55 million to Carnegie Mellon University and has the business school named in his honor, Tepper School of Business, said he isn't opposed to such a deal.
"We just don't want them to have a deal where they screw us," Tepper said. "Because there's a record of them screwing us."
-----
Copyright (c) 2006, Detroit Free Press
Distributed by Knight Ridder/Tribune Business News.
YES... OUR VERY OWN DAVID TEPPER
Recent COOP News
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 08:31:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 08:09:25 PM
- Mr. Cooper Group Inc. Announces Pricing of Offering of $750 Million of Senior Notes • Business Wire • 07/29/2024 08:30:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/29/2024 08:24:31 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/26/2024 08:20:36 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/25/2024 11:00:12 AM
- FLAGSTAR BANK, N.A. ANNOUNCES SALE OF ITS MORTGAGE SERVICING BUSINESS • PR Newswire (US) • 07/25/2024 11:00:00 AM
- Mr. Cooper Group Reports Second Quarter 2024 Results and Announces Acquisition of Mortgage Operations From Flagstar • Business Wire • 07/25/2024 11:00:00 AM
- Mr. Cooper Group Inc. to Discuss Second Quarter 2024 Financial Results on July 25, 2024 • Business Wire • 07/11/2024 08:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/30/2024 08:07:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/24/2024 08:36:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:33:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:28:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:26:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:24:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:22:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:19:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 08:17:44 PM
- Xome Democratizes Real Estate with Launch of DIY Sales Platform, No Agent Required • Business Wire • 05/22/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/15/2024 10:47:32 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 05/15/2024 12:11:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/10/2024 12:12:48 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/07/2024 08:22:09 PM
- Mr. Cooper Group Reports First Quarter 2024 Results • Business Wire • 04/24/2024 11:00:00 AM
- Mr. Cooper Group Announces Two New Senior Leaders • Business Wire • 04/23/2024 01:00:00 PM
FEATURED Element79 Gold Corp Provides Update on Nevada Portfolio • Aug 23, 2024 8:00 AM
PickleJar Unveils Latest Venue Managed Services Innovations in Upcoming Webinar • PKLE • Aug 23, 2024 1:11 PM
Maybacks Adds Award Winning Show to Its Lineup Discusses Maybacks Opportunity • AHRO • Aug 22, 2024 11:30 AM
North Bay Resources Announces First Gold Concentrate at Mt. Vernon Gold Mine, Assays 12 oz/ton Gold, 17.5 oz/ton Platinum, and 8 oz./ton Silver, Sierra County, California • NBRI • Aug 22, 2024 10:28 AM
All Things Mobile Analytic, Inc. Reports Major Growth with Over $11 Million in Revenue • ATMH • Aug 22, 2024 7:19 AM
Unitronix Announces Strategic Entry into Cryptocurrency Space • UTRX • Aug 21, 2024 10:00 AM