Delphi Creditors Gear Up For Another Brawl: Report

Law360, New York (March 24, 2006, 12:00 AM EST) -- Defeated in the equity committee battle, the unsecured creditors of bankrupt auto parts maker Delphi Corp. are steeling themselves for another fight, this time surrounding a controversial General Motors Corp. indemnity clause.

The committee intends to dispute GM’s right to future reimbursement for the labor benefits it will be forced to pay to Delphi’s unionized workforce, the Wall Street Journal reported on Friday.

Delphi’s financial troubles began in 1999, when GM released the company as a separate corporation.

The downward spiral culminated in the former subsidiary...
To view the full article, register now.