Delphi clears hurdle to exit from Ch 11
Delphi clears a vital hurdle to emerge from Chapter 11 protection as most creditors approve its reorganisation plan
Voting results filed with the US Bankrupty Court for the Southern District of
New York show 81% of 4,000 eligible creditors have approved
Corp‘s ‘first amended joint plan of reorganization’.
Although Delphi could make no assurances, the company believes the plan
satisfies the requirements of the Bankruptcy Code.
The company is now seeking a judge’s approval of the plan in a two-day
hearing in New York.
Among the objections Delphi faced were protests by labor unions over a
management compensation plan which gives valuable equity stakes in the
reorganised company to top executives.