Delphi May Sue Over Collapsed $2.5B Deal

Law360, New York (April 10, 2008, 12:00 AM EDT) -- Bankrupt Delphi Corp. has said it may sue a group of investors, including hedge fund Appaloosa Management LP, that backed out of a $2.55 billion financing deal last week, leaving the auto parts company to remain in Chapter 11 protection.

In a filing with the U.S. Securities and Exchange Commission Wednesday, Delphi denied that it had breached certain provisions of the investment agreement and scoffed at the contention that it owed the investors a fee of $82.5 million.

Delphi said that at the time it learned...
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