Delphi Announces Disclosure Statement and Plan Investment Agreement Amendment Hearings Continued to Nov. 29
November 09 2007 - 8:00AM
Marketwired
TROY, MI announced that the U.S. Bankruptcy Court for the
Southern District of New York has agreed to continue until Nov. 29
a hearing previously scheduled for Nov. 8 to consider potential
amendments to its Joint Plan of Reorganization and related
Disclosure Statement as well as an amendment to the Company's
Investment Agreement. Consistent with the Company's expectations
previously disclosed, the conditions to the effectiveness of the
Investment Agreement amendment announced on Oct. 30 were not
satisfied prior to the Nov. 8 scheduled hearing. As a result,
Delphi's Plan Investors are no longer obligated to execute the Oct.
30 amendment, although the underlying Investment Agreement remains
effective in accordance with its terms as approved by the
Bankruptcy Court in August, 2007. The adjournment, which was
approved by the Bankruptcy Court on Nov. 7, will permit the Company
to continue discussions with its principal stakeholders, including
Delphi's Statutory Committees, Plan Investors and General Motors
Corp. In order to proceed with the Nov. 29 hearings, the Bankruptcy
Court's supplemental scheduling order requires Delphi to use
commercially reasonable efforts to file additional potential
amendments to the Company's Disclosure Statement, Plan of
Reorganization, Investment Agreement with the Plan Investors and
Global Settlement Agreement with GM by Nov. 16. Delphi continues to
expect that it will emerge from chapter 11 during the first quarter
of 2008.
ABOUT DELPHI'S CHAPTER 11 CASE
Delphi's Chapter 11 cases were filed on Oct. 8, 2005, in the
United States Bankruptcy Court for the Southern District of New
York and were assigned to the Honorable Robert D. Drain under lead
case number 05-44481 (RDD).
The Adequacy Hearing for the Disclosure Statement began on Oct.
3, 2007 and is scheduled to continue on Nov. 29, 2007. Approval of
the Disclosure Statement and related voting solicitation procedures
permits the company to solicit acceptances of the proposed Plan of
Reorganization later this year and seek confirmation of the Joint
Plan of Reorganization by the Bankruptcy Court during the first
quarter of 2008.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state.
More information on Delphi's U.S. restructuring and access to
court documents, including all of the documents referenced in this
press release and other general information about the Chapter 11
cases, is available at www.delphidocket.com.
Information on the case can also be obtained on the Bankruptcy
Court's website with Pacer registration:
http://www.nysb.uscourts.gov. For more information about Delphi and
its operating subsidiaries, visit Delphi's website at
www.delphi.com.
FORWARD-LOOKING STATEMENTS
This press release, as well as other statements made by Delphi
may contain forward-looking statements that reflect, when made, the
Company's current views with respect to current events and
financial performance. Such forward-looking statements are and will
be, as the case may be, subject to many risks, uncertainties and
factors relating to the Company's operations and business
environment which may cause the actual results of the Company to be
materially different from any future results, express or implied,
by such forward-looking statements. In some cases, you can identify
these statements by forward-looking words such as "may," "might,"
"will," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential" or "continue," the negative of
these terms and other comparable terminology. Factors that could
cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the
following: the ability of the Company to continue as a going
concern; the ability of the Company to operate pursuant to the
terms of the debtor-in-possession financing facility and to obtain
an extension of term or other amendments as necessary to maintain
access to such facility; the terms of any reorganization plan
ultimately confirmed; the Company's ability to obtain Court
approval with respect to motions in the chapter 11 cases prosecuted
by it from time to time; the ability of the Company to prosecute,
confirm and consummate one or more plans of reorganization with
respect to the chapter 11 cases; the Company's ability to satisfy
the terms and conditions of the EPCA; risks associated with third
parties seeking and obtaining Court approval to terminate or
shorten the exclusivity period for the Company to propose and
confirm one or more plans of reorganization, for the appointment of
a chapter 11 trustee or to convert the cases to chapter 7 cases;
the ability of the Company to obtain and maintain normal terms with
vendors and service providers; the Company's ability to maintain
contracts that are critical to its operations; the potential
adverse impact of the chapter 11 cases on the Company's liquidity
or results of operations; the ability of the Company to fund and
execute its business plan (including the transformation plan
described in its periodic filings with the SEC and its filings with
the Bankruptcy Court ) and to do so in a timely manner; the ability
of the Company to attract, motivate and/or retain key executives
and associates; the ability of the Company to avoid or continue to
operate during a strike, or partial work stoppage or slow down by
any of its unionized employees or those of its principal customers
and the ability of the Company to attract and retain customers.
Additional factors that could affect future results are identified
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2006, including the risk factors in Part I. Item 1A.
Risk Factors, contained therein and the Company's quarterly
periodic reports for the subsequent periods, including the risk
factors in Part II. Item 1A. Risk Factors, contained therein, filed
with the SEC. Delphi disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any
reorganization plan ultimately confirmed, can affect the value of
the Company's various prepetition liabilities, common stock and/or
other equity securities. Additionally, no assurance can be given as
to what values, if any, will be ascribed in the bankruptcy cases to
each of these constituencies. A plan of reorganization could result
in holders of Delphi's common stock receiving no distribution on
account of their interest and cancellation of their interests. In
addition, under certain conditions specified in the Bankruptcy
Code, a plan of reorganization may be confirmed notwithstanding its
rejection by an impaired class of creditors or equity holders and
notwithstanding the fact that equity holders do not receive or
retain property on account of their equity interests under the
plan. In light of the foregoing, the Company considers the value of
the common stock to be highly speculative and cautions equity
holders that the stock may ultimately be determined to have little
or no value. Accordingly, the Company urges that appropriate
caution be exercised with respect to existing and future
investments in Delphi's common stock or other equity interests or
any claims relating to prepetition liabilities.
MEDIA CONTACT: Lindsey Williams 248-813-2528 INVESTOR CONTACT:
Al VanDenBergh 248-813-2495