U.S. Govt. Warns Delphi Over Pension Funding

Law360, New York (August 15, 2008, 12:00 AM EDT) -- The United States government backstop for corporate pension plans is warning Delphi Corp. that the bankrupt auto parts maker has until Sept. 30 to transfer over $1.5 billion meant to cover pension obligations to General Motors Corp.

If Delphi misses the Sept. 30 deadline, Pension Benefit Guaranty Corp. Director Charles E.F. Millard said in a Thursday letter to Delphi management, the penalties facing the auto parts maker would be severe and throw its emergence from Chapter 11 bankruptcy protection into further doubt.

Delphi would have to...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.