Hedge Funds Battle For Delphi Refinancing

Law360, New York (December 21, 2006, 12:00 AM EST) -- Just days after a group of hedge funds pledged to bail out bankrupt auto parts maker Delphi Corp. for $3.4 billion, Highland Capital Management LP has stepped into the fray with a competing refinancing plan worth up to $4.7 billion.

In a letter to Delphi's board, Highland Capital said it opposed the earlier plan and outlined its own proposal. The hedge fund owns 8.9% of Delphi.

Under Highland Capital's plan, existing stockholders will be able to participate in a $4.7 billion rights offering.

All existing stockholders...
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