Concerns Raised Over Delphi’s Bid To Ditch GM Contracts

Law360, New York (August 9, 2006, 12:00 AM EDT) -- Two hedge funds have implored a federal bankruptcy judge to exercise caution when considering Delphi’s bid to scrap nearly $5 billion worth of auto supply contracts with General Motors Corp.

On Tuesday, Appaloosa Management L.P. and Harbinger Capital Partners expressed concern that a "wholesale" rejection of GM contracts could lead the auto giant to seek massive amounts of damages from its former unit, according to court documents.

Delphi and its subsidiaries "have not met their burden of demonstrating that rejection of claims will not saddle the...
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