Delphi: 'Unlikely' Holders to Get Anything
WASHINGTON, Dec 21, 2005 (AP Online via COMTEX) -- Delphi Corp. said Wednesday in a regulatory filing that a shareholder request to form an equity committee in its bankruptcy case is "premature" and that it's "highly unlikely" that holders of common shares will receive anything in the reorganization.
The Troy, Mich.-based auto parts maker said it believes its shares are worthless.
According to the filing, the request for a committee came from Appaloosa Management L.P., a hedge fund based in Chatham, N.J., and run by David Tepper.
In October, Appaloosa reported owning 9.3 percent of Delphi, which filed for bankruptcy Oct. 8.
Delphi made its response to the committee request in a Dec. 19 letter to the trustee in its Chapter 11 case.
In its response, Delphi said its board of directors could represent all stakeholders in maximizing their recoveries in the company's bankruptcy.
The company asked the trustee to hold off on appointing an equity committee until a meeting of creditors scheduled to be held in February 2006.
Shares of Delphi were at 33.1 cents in early over-the-counter trading Wednesday, down from 34.3 cents in late trading Tuesday.
Copyright 2005 Associated Press, All rights reserved
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As of Saturday, 12-17-2005 23:59, the latest Comtex SmarTrend(SM) Alert, an automated pattern recognition system, indicated a DOWNTREND on 09-01-2005 for DPH @ $5.03.
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