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Delphi, Appaloosa, Harbinger reach confidentiality agreement on evaluation of business arrangement
By Caroline Salls
Pittsburgh, Aug. 1 - Delphi Corp. entered into a confidential information, standstill and nondisclosure agreement with stockholders Appaloosa Management LP and Harbinger Capital Partners Master Fund I, Ltd. in connection with the evaluation of a possible negotiated business arrangement involving Delphi, according to a filing with the Securities and Exchange Commission.
Under the confidentiality agreement, Delphi can give Appaloosa non-public, confidential and/or proprietary information in connection with the evaluation.
In addition, under the confidentiality agreement, Appaloosa has withdrawn its March 15 letter that expressed concerns over Delphi's management in connection with its Chapter 11 case.
Subject to customary exceptions, Appaloosa and Harbinger agreed to keep the evaluation material strictly confidential, and, before the release date, the parties agreed to engage in discussions and negotiate exclusively with Delphi and its legal and financial advisers in connection with the potential business arrangement.
On Monday, Appaloosa engaged UBS Securities LLC as lead financial adviser and lead capital markets adviser and engaged Merrill Lynch & Co. as an additional financial adviser in connection with any potential restructuring, acquisition or other transaction involving Delphi.
Under the engagement letters, the financial advisers can participate in any debt or equity financing transaction involving Delphi that is sponsored by Appaloosa and not financed by Appaloosa.
Harbinger is also a party to the engagement letters.
Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.
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