Delphi Corp. will be in court today asking for approval of a modified plan that could end a four-year adventure in Chapter 11 bankruptcy. Part of that deal includes General Motors taking back five Delphi plants, one of which is the Lockport thermal systems plant on Upper Mountain Road.
Late Monday night, a group of Delphi’s creditors led by J.P. Morgan Chase Bank won out in an auction for the company’s assets. The creditors’ bid would involve them forgiving the $3.45 billion Delphi owes them. The deal is similar to the one Delphi announced in June with Platinum Equity of California, who lost the auction to the creditors. The group didn’t like the Platinum deal, so it submitted its own bid.
But as Delphi stands before U.S. Bankruptcy Judge Robert Drain today, it’ll have to contend with objections to the plan, most of which are by workers and retirees who may be facing cuts to their pensions. According to the Associated Press, Delphi has resolved objections filed by several state and federal agencies.
U.S. Rep. Chris Lee, R-Clarence, has been active in a bipartisan movement in Congress on behalf of Delphi retirees. Lee said he has been keeping up on all Delphi activity and has stayed in contact with both salaried and hourly retirees.
“We want to keep them informed and continue to see that this has visibility,” Lee said. “Through no fault of their own, these retirees could see a 20 to 70 percent cut to their pensions.”
Lee met with the Pension Benefit Guaranty Corp. last week. The PBGC is the federal agency that would take over the pensions of about 70,000 Delphi workers and retirees, both salaried and hourly. Lee also met with Ron Bloom, of the U.S. Treasury Department’s Auto Task Force. Lee, along with a host of congressional representatives, has been asking for more transparency and an investigation into the decision-making process of Delphi pensions being turned over to the PBGC. Lee said he has received a letter from the chairman of the U.S. House of Representatives Financial Services Committee agreeing with Lee on the need for an investigation. Chairman Rep. Barney Frank, D-Mass., said soon the committee will have an idea on how to proceed with a hearing.
“We want the retirees to be treated fairly,” Lee said.
In a released statement, Platinum said it would continue discussions with Delphi in advance of today’s court hearing.
“We look forward to working on the next phase of this process with Delphi, its lenders and General Motors, all of whom have acknowledged the value of Platinum Equity’s operating expertise,” Platinum said.
Delphi spun off from GM in 1999 and has been operating in bankruptcy since October 2005. It almost emerged from bankruptcy last year, until investors pulled out of the deal in April 2008. Delphi produce about 10 percent of the parts GM uses.
Contact reporter Joe Olenick at 439-9222, ext. 6241.
The Associated Press contributed to this report.
Business
DELPHI: Auto parts maker in court today on bankruptcy exit plan
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Unpaid billions
A growing chorus of bricks-and-mortar small businesses are protesting what they see as tax law inequities driving them to the brink by requiring they collect and remit sales taxes while their electronic counterparts prosper through tax-free goods and services.
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Hoagie Brothers is back at Taste
Hoagie Brothers has some faithful followers. And the restaurant is hoping to see some of those followers on Sunday.
Duane and Sharon Behm of Lockport say they stop by the South Transit Road submarine and pizza shop frequently. They conservatively estimate about 10 trips a week to Hoagie Bros., not including the times they stop by with visitors. The Behms like to tell as many as possible to come by for a bite.
“We tell people all the time,” Duane said. “It’s excellent, the best subs.” -
Good Karma
There’s a lot of good stuff at Cafe Karma, a new specialty sandwich and coffee shop now open on Main Street.
Located at 21 Main St. in the Lockview Plaza, the shop was formerly The Daily Grind, a coffee shop that had been there since it opened in 2006. Co-owners John Verbocy and Dennis Farley opened Cafe Karma about three weeks ago. So far the response has been good.
“It has been amazing,” Farley, a Newfane native, said. -
Duffy headlining annual Chamber of Commerce gala
New York State Lieutenant Governor Robert Duffy will be the keynote speaker at the Niagara USA Chamber of Commerce’s annual Honors dinner next week.
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Local businesses get ready for Super Bowl
Last year’s game between the Indianapolis Colts and the New Orleans Saints was the most-watched television program in history. This year there is increased local interest in Super Bowl XLV, thanks to Niagara Falls native and Green Bay running back James Starks and Lockport native and Steelers offensive line coach Sean Kugler. Add that together with Green Bay being the last seeded team from the NFC and the off-the-field activities of Pittsburgh quarterback Ben Roethlisberger, and today’s game means a lot of people are going to be watching.
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First Niagara reports record earnings
A big year finished with a big surge in profits for First Niagara.
The bank brought in $140.4 million in reported net income for the year, much higher than the $79.4 million in 2009, according to the company fourth quarter and year end results released Thursday. For the fourth quarter of 2010 First Niagara reported an income of $45.9 million, up from the $28.9 million reported a year ago. -
Scirto Jewelers celebrates 65 years in Lockport
Bill Scirto has been in the jewelry business a long time.
His business, Scirto Jewelers celebrated a milestone last week, its 65th anniversary. The Main Street store has been in the same location since it opened Dec. 8, 1945.
"We’re still here,” Scirto, 80, said. “We still do our own repairs, our own diamond setting, clock and watch repair.” -
First Niagara Risk Management expands in Pennsylvania
First Niagara continues to expand as its insurance subsidiary adding another firm from Pennsylvania.
First Niagara Financial Group, Inc.’s insurance subsidiary, First Niagara Risk Management, announced Wednesday it had purchased Banyan Consulting of Pittsburgh and Mechanicsburg, Pa. Banyan provides risk management, employee benefits consulting and investment services. -
AES Somerset back online
AES Somerset went back on line Tuesday after the coal-burning power plant on Lake Road was down 24 days.
“The plant is in start-up today,” Plant General Manager Peter Bajc said. “During the time we were down, the Somerset people remained on the job.” -
Tops reports 39 percent increase in sales
Tops Markets saw a 39 percent increase in net sales during the third quarter of 2010, the company reported Tuesday. And that success is due in large part to Tops’ purchase of 55 former Penn Traffic stores.
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