Hedge Fund Opposes Delphi Restructuring Plans

Law360, New York (April 18, 2006, 12:00 AM EDT) -- Hedge fund Appaloosa Management LP has asked a bankruptcy judge to bar Delphi Corp. from throwing out its labor union deals and its money-losing contracts with General Motors Corp.

Appaloosa, Delphi’s largest shareholder with 9.3% which recently won its fight to form an equity committee, filed an objection with the U.S. Bankruptcy Court in Manhattan on Monday, arguing that Delphi has not yet proven that its proposals will benefit the company.

It said Delphi’s request for court approval seemed to be “premature.”

“We happen to object...
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