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Delphi Senior Noteholders Slam Bankruptcy Exit Plan

Law360 (January 15, 2008, 12:00 AM EST) -- A group of Delphi Corp. bondholders has called on a bankruptcy court to reject the auto parts maker's exit plan, arguing the proposal would provide a “windfall” of hundreds of millions of dollars to junior creditors at the expense of bondholders.

The investor group, represented by senior noteholders with $2.4 billion worth of claims, told Manhattan Bankruptcy Judge Robert D. Drain on Friday they would likely vote to reject the reorganization plan, which they claimed ignored the absolute priority rule of Chapter 11 and could not...
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