Investor Group Scraps $2.55B Delphi Deal

Law360, New York (April 4, 2008, 12:00 AM EDT) -- In a blow to Delphi Corp.'s ongoing efforts to emerge from bankruptcy, Appaloosa Management LP revealed Friday that it was terminating an agreement to invest $2.55 billion in the auto parts maker.

In a filing with the U.S. Securities and Exchange Commission, a group of investors led by Appaloosa said that Delphi had “breached provisions of the agreement.”

Other members of the investor group, dubbed A-D Acquisition Holdings LLC, include Merrill Lynch, UBS Securities LLC and Goldman Sachs & Co.

One violation, according to the letter,...
To view the full article, register now.