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
- Business
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Vendors sought for Canal Street market
Vendor applications are now available for the 2012 Lockport Community Market, an open-air market to be open Saturdays in July and August on Canal Street.
The goal of the market is to provide a venue for area businesses, farmers, merchants and artisans to showcase their wares, and show the depth and variety of Lockport's business community, according to organizer Heather Peck, program manager of Lockport Main Street Inc.
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A matter of survival?
That mammoth electric generating station on Lake Road? It ain’t the cash cow it used to be.
The coal-fired power plant formerly known as AES Somerset faces liquidation if a proposed deal to recharge it, through investment, tax relief and payroll slashing, doesn’t pass muster with the U.S. Bankruptcy Court in Delaware.
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Wishes granted
Nine established downtown-area businesses and six new businesses earned funds totalling $180,000 from the State Office of Community Renewal on Monday.
Mayor Michael Tucker, Sen. George Maziarz and Charles Bell of the Greater Lockport Development Corporation made the announcement in front of Micrographics at 36-B Main St. as several of the grant winners gathered and smiled in the breeze.
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Rescuing the ruins
Greater Lockport Development Corporation will work with a local business that’s aiming to preserve historic industrial ruins downtown.
The GLDC board of directors this week approved a memorandum of agreement with Hydraulic Race Corporation, owner of the Lockport Cave and Underground Boat Ride tour, stating the agency will act as a “pass through” entity in the event HRC lands state grants to stabilize the Holly and Richmond Manufacturing ruins.
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First Niagara gets into auto lending
First Niagara’s latest expansion is now into the indirect auto lending business.
The company announced Wednesday it will provide a variety of vehicle financing options through dealerships scattered throughout the northeast. More than 400 have already signed on and First Niagara expects that number to grow to 1,500 by 2014.
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Claytown pieces available at Clarence pottery shop
Former Clay Town customers who left behind finished pottery pieces can still retrieve the pieces from a Clarence-based pottery shop.
Marie Sperrazza, owner of Clay Hands Pottery, 10086 Main St., Clarence, is holding upwards of 100 finished pieces by Clay Town customers who never retrieved them after the Robinson Road, Lockport, paint-your-own-pottery studio closed. -
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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