Delphi Deal Is A $1B Raid: Hedge Fund

Law360, New York (January 3, 2007, 12:00 AM EST) -- Institutional investors are trying to raid Delphi Corp.’s coffers with a proposed investment deal that would strip the bankrupt auto parts maker of more than $1 billion in value, according to an objection filed by hedge fund Highland Capital Management LP.

The proposed deal, spearheaded by investors Appaloosa Management LP and Cerberus Capital Management LP, would erase an estimated $1.29 billion of aggregate value from common stockholders, according to Highland Capital.

Not mincing words, the hedge fund said in a Dec. 28 objection that Appaloosa's deal...
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