Delphi
DELPHI: Approval of bankruptcy exit plan hailed by local political leaders
Local political leaders hailed as good news Thursday’s announcement about the approval of Delphi Corp.’s bankruptcy exit plan.
But they added that there are still concerns to be resolved about workers’ pensions.
A bankruptcy judge approved a plan to allow Delphi’s lenders and General Motors to take control of the company. The approval now gives Delphi a clear path to emerge from bankruptcy, possibly by Aug. 31 or Sept. 30 at the latest. The auto parts maker had been operating in bankruptcy protection since October 2005.
Part of the plan includes GM’s repurchase of the Delphi Thermal Systems on Upper Mountain Road. Lockport Mayor Michael Tucker said without knowing the exact language of the GM-Delphi agreement, it could be some time before it’s known if the repurchase will be good for the local plant.
“I think it’s more of a wait-and-see what happens,” Tucker said.
U.S. Sen. Charles Schumer said in May he supported GM’s plan to buy back the Lockport Delphi plant, as well as four others. In a statement, he called the approval a benefit to the workers’ communities, both in Lockport and in Rochester, where another plant will go back to GM.
“Today thousands of Delphi employees in Lockport and Rochester, and the families and businesses that depend on them, can sleep a little easier,” Schumer said. “In a time of overwhelming economic turmoil, this news that Delphi’s creditors have come to their senses and a judge has seen the merit in allowing GM to purchase these New York plants, provides a great deal of reassurance. We’ve worked long and hard on this for months, and today we crossed the finish line.”
U.S. Rep. Chris Lee, R-Clarence, said called Delphi’s reorganization not only a good thing in itself, but also a chance for the Lockport plant to improve its long-term viability.
“It’s an opportunity for Lockport to move forward,” Lee said.
However, 70,000 Delphi workers and retirees, both salaried and hourly, are on track to have their pensions moved to the federal Pension Benefit Guaranty Corp. They could lose up anywhere from 20 percent to 70 percent of their retirement benefits, Lee and a bipartisan group of congressmen have said.
Lee said Thursday he was trying to track down Rep. Barney Frank, chairman of the House Financial Services committee. Lee and the other congressmen had sent a letter to Frank asking for a hearing on the Delphi benefits issue. Frank had sent a reply to Lee agreeing with the need for a hearing.
“We want to get a date for a hearing,” Lee said. “And make sure this is transparent. Since we’re all shareholders of GM, we need to make the workers are treated fairly.”
Contact reporter Joe Olenick at 439-9222, ext. 6241.
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