Delphi says too soon to appoint equity committee
NEW YORK, Dec 21 (Reuters) - Bankrupt auto parts maker
Delphi Corp. on Wednesday rejected a shareholder
request to appoint an equity committee to represent Delphi
stockholders.
Delphi said in a regulatory filing it has asked the U.S.
trustee in the bankruptcy case to determine that it is
premature to appoint an equity committee, at least until Delphi
files financial statements in January.
Delphi said it is "highly unlikely" that common
stockholders will receive any value in the bankruptcy case, and
said official equity committees are rare in such cases. It
added that, because 10 of its 12 board members are independent,
shareholder interests are adequately represented.
The request for a committee was filed by Appaloosa
Management LP, a shareholder, the filing said.
Delphi filed for Chapter 11 protection in October, the
biggest bankruptcy in U.S. automotive history. Earlier this
week, it withdrew a proposal to slash employee wages and
benefits as it works toward an agreement with its labor unions
and with General Motors Corp. , its former parent.
Separately, Delphi said it named Brian Thelen as its vice
president of audit, effective Feb 1. Thelen will report to
Chief Financial Officer Robert Dellinger and to the board's
audit committee.
