Delphi's Proposed Sale Plan Sparks Lenders' Ire

Law360, New York (June 24, 2009, 12:00 AM EDT) -- Delphi Corp.’s plan to bring its long-running bankruptcy to a close, which involves selling assets to a private equity firm and former parent General Motors Corp., has drawn opposition from lenders who claim Delphi shirked its fiduciary and contractual obligations by agreeing to the “secretly negotiated” sale transaction.

The “collective of DIP lenders” filed its preliminary objection to the confirmation of Delphi’s first amended reorganization plan, and the debtors proposed sale under Section 363 of the Bankruptcy Code, in the U.S. Bankruptcy Court for the Southern...
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