Delphi to slash bonuses to exit bankruptcy
US court gives go-ahead to banruptcy exit plan, as long as huge bonuses are not paid
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.