Noteholders Wary Of $228.5M Delphi Settlement

Law360, New York (January 17, 2008, 12:00 AM EST) -- Delphi Corp. is fighting an attempt by five senior noteholders to scrap a $228.5 million settlement reached in multidistrict litigation over alleged violations of securities and employee benefits laws.

Delphi and lead plaintiffs in securities litigation against the company on Wednesday responded to an objection to the deal in the U.S. Bankruptcy Court for the Southern District of New York.

The noteholders claimed that the settlement must be rejected because it treats subordinated creditors the same as senior creditors.

Delphi is seeking final approval of the...
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