DELPHI: Approval of bankruptcy exit plan hailed by local political leaders

Delphi

July 31, 2009

By Joe Olenick<br><a href="mailto:joe.olenick@lockportjournal.com">E-mail Joe</a> The Lockport Union-Sun %26 Journal Fri Jul 31, 2009, 02:18 AM EDT

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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Delphi

Still no answers for Delphi retirees
Twenty-two thousand Delphi Corp. retirees found out 16 months ago their pensions were being turned over to a federal agency. In July 2009, the Pension Benefit Guaranty Corp. took control of those pensions, which meant possible cuts of anywhere from 30 percent to 70 percent in the retirement plans.
Hourly employees faced the same situation, except General Motors agreed to top off those pensions. Salaried retirees did not have their pensions topped off by anyone.
Now they want to know why. Letters, testimonies and speeches have asked the U.S. Treasury Department, the department’s Auto Task Force and the Obama Administration for information on that decision was made.

August 1, 2010 1 Photo
Delphi retirees group came together quickly
Salaried workers and retirees lost big chunks of their pensions in July 2009, and almost as quickly, the Delphi Salaried Retiree Association was formed.
The DSRA actually started forming when it was announced Delphi was eliminating health care and life insurance benefits for salaried retirees as of April 1, 2009. There are roughly 22,000 salaried Delphi retirees nationwide.

August 1, 2010
DELPHI: UAW supports salaried retirees' fight for pension equity The United Auto Workers are supporting Delphi salaried retirees who are fighting to save their pensions.
January 27, 2010
DELPHI: Salaried retirees gain key support in fight against pension cuts Delphi Corp. salaried retirees and employees have gained a vote of support from some members of the U.S. House of Representatives.
December 3, 2009
BUSINESS: Delphi emerges from bankruptcy
October 7, 2009
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.
July 31, 2009
BUSINESS: Delphi asking court for bid approval A hearing on Delphi Corp.’s plan to hand control of the company to its lenders and eventually end its nearly four-year stay in Chapter 11 got under way Wednesday in New York City with arguments from attorneys representing the auto supplier and some of those objecting to the plan.
July 30, 2009
DELPHI: Auto parts maker in court today on bankruptcy exit plan 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.
July 28, 2009
DELPHI: Creditors win in auction for company's assets Auto parts maker Delphi Corp. said Monday its creditors won out over a California private-equity firm in an auction for the company’s assets as it moves to emerge from bankruptcy protection.
July 27, 2009
DELPHI: GM buy-back progresses; retiree benefits gain support Support has come for both General Motors’ plan to buy back Delphi plants and for Delphi’s salaried retirees.
July 13, 2009
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