GM Owes Delphi $26 B, Investors Say

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Thread: GM Owes Delphi $26 B, Investors Say

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    GM Owes Delphi $26 B, Investors Say

    http://biz.yahoo.com/ap/060906/gm_delphi.html?.v=2

    NEW YORK (AP) -- General Motors Corp. owes $26 billion to Delphi Corp., an investor committee for the auto parts maker said in a bankruptcy court filing.
    The committee representing shareholders at Delphi said in papers filed late Monday that its calculation shows the automaker has obligations to its biggest supplier, which was spun off from GM in 1999.

    GM, for its part, has filed an unsecured multibillion-dollar claim against Delphi, the Troy, Mich.-based supplier said in papers filed last month. The automaker aided Delphi in funding buyout programs for members of its two biggest unions, though it retained the right to recoup those contributions once Delphi emerges from court protection.

    The equity committee made the assertion in a document to oppose a motion brought by Delphi's bondholders that will be considered Sept. 14. Judge Robert Drain of the Southern District of New York is scheduled to consider a request from the creditors committee whether it can sue GM and certain former Delphi executives.

    The creditors committee said, and the equity committee agreed, that GM used the spin-off to pass on certain retirement, health care and labor costs to Delphi, crippling it and eventually pushing it into bankruptcy. But the bondholders have also asked for a more significant role in ongoing negotiations between GM, Delphi and labor unions.

    The power of those three contingents, St. John's University Professor Anthony Sabino said, has pushed even the creditors' committee to the margin, while the equity committee retains its place as the last to collect anything. He said shareholders may garner some attention from the judge, but that may not mean much.

    "Shareholders are absolutely, positively last in line," Sabino said. "The minute a company enters bankruptcy, assume you have lost every penny. It's only a rare miracle when shareholders get anything."

    Meanwhile, Delphi seeks the right to abandon certain supply contracts it has with GM. A hearing on that motion is scheduled to begin Sept. 28.

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    Re: GM Owes Delphi $26 B, Investors Say

    good luck getting any more money
    Man Delphi is such a pit

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    Re: GM Owes Delphi $26 B, Investors Say

    Will Delphi stop making parts for GM in the future?

    Parent and kid are fighting about money...not a good picture.

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    Re: GM Owes Delphi $26 B, Investors Say

    I'll be glad when this is over. Delphi & UAW contracts are the last two great hurdles that GM has to overcome. I would include Kerkorian & Co, but the board appears to have more faith in Wagoner than Kerkorian.

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    Re: GM Owes Delphi $26 B, Investors Say

    I got spun off with the rest of Delphi back then so I'm somewhat familiar with the situation. I'm not sure how they can claim that they saddled Delphi with a bunch of retirement burden when Delphi had zero retirees at the time of the spinoff. GM took EVERYONE (that had already retired) as far as I know and allowed anyone that was eligible to retire to retire under GM for a certain time after the spinoff (several months).
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    Re: GM Owes Delphi $26 B, Investors Say

    um, this number seems a little inflated.

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    Re: GM Owes Delphi $26 B, Investors Say

    Nothing picking some way out there number to get media attention. Though I would have thought that GM's buyout of Delphi labor contracts that just occured would do a lot to make this case null and void.

    More than likely this is driven by investors who didn't know a good time to sell and want some money back.
    Talk is cheap, sometimes it is on sale.

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    Re: GM Owes Delphi $26 B, Investors Say

    That's a bogus argument by Delphi. They had full knowledge of what it was they were buying.

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    Re: GM Owes Delphi $26 B, Investors Say

    Investors just trying to cover their losses. Just a blip on the radar, no legs to this.

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    Re: GM Owes Delphi $26 B, Investors Say

    if they can say that, then I will say " GM owes me $420,000.56"
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    Re: GM Owes Delphi $26 B, Investors Say

    Quote Originally Posted by Bornfromparents
    good luck getting any more money
    Man Delphi is such a pit
    It's worse than a pit, it's a black hole. Not even sunlight can escape it.
    I'll make a new sig. Later.
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    Re: GM Owes Delphi $26 B, Investors Say

    hmm so when will gm get a new supplier with some quality parts?

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    Re: GM Owes Delphi $26 B, Investors Say

    Wow this is becoming an ugly event. Hope GM gets this out of the way soon.
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    Re: GM Owes Delphi $26 B, Investors Say

    GM is already going to other suppliers. I do know that by 2008, Delphi will have the majority of Ford columns as well. Everything all goes back to those UAW-GM negotiators back in 1999 when they got spun off and managed to talk their way into automaker wages instead of supplier wages. Now they are having to bite the bullet and they don't want to get hurt.

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    Re: GM Owes Delphi $26 B, Investors Say

    Who the hell is going to make most of GM's parts if Delphi doesn't? If things get ugly once 2007 production get into full swing, Delphi could cripple GM by not supplying the parts needed to make GM vehicles. Am I overestimating Delphi's importance to GM's supply chain, or is that possible?
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