Delphi to slash bonuses to exit bankruptcy

A US federal bankruptcy court has agreed to approve the bankruptcy exit plan submitted last week by US-based auto part supplier Delphi Corp which cuts down on the company's US operations.

According to US newsagency reports, US bankruptcy Judge Robert Drain told Delphi to cut cash bonuses for executives to $US16.5m (₤8.5m) from a proposed $US87.9m which the company had planned to distribute to more than 500 managers.

Steve Miller, Delphi chairman, could receive a cash award of $US8.3m, while the company's chief executive officer could get $US5.3m.

The US Department of Labor announced yesterday an emergency grant of more than $US1.8m, releasing $US598,241 initially to Wisconsin to assist about 400 workers affected by the closure of one of Delphi’s plants.

Further reading:

Delphi clears hurdle to exit from Ch 11

Deloitte agrees to pay ₤19m to Delphi Corp

Read story in the Dayton Business Journal