Hedge Fund Opposes Delphi Buyout Plan

Law360, New York (June 21, 2006, 12:00 AM EDT) -- Distressed-debt hedge fund Appaloosa Management LP reestablished itself as a thorn in Delphi Corp.’s side this Tuesday, coming out against the bankrupt auto parts maker’s proposal to reduce its work force through early-retirement buyouts.

The firm, known for its aggressive tactics in providing liquidity to struggling companies in exchange for a large stake in their business, filed a preliminary objection with the U.S. Bankruptcy Court in Manhattan, stating that Delphi failed to show how the buyouts would help the company.

Appaloosa, the leader of an ad...
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