Delphi creditors committee objects to six-month exclusivity extension request

By Caroline Salls

Pittsburgh, Jan. 4 - Delphi Corp.'s official committee of unsecured creditors objected to the company's request for an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the objection, the committee believes the requested six-month extension is inappropriate, given that the company has already has received two six-month extensions of its original exclusive periods and "still [has] not achieved a plan framework that is acceptable to most of their major stakeholders."

The committee said it will consent to a 60-day exclusivity extension, which would extend the plan-filing period through April 2 and the solicitation period through June 1. However, the committee said it believes that any longer extension would be excessive.

The committee said the company admits in the motion that in the 14 months since its Chapter 11 filing, it still has not reached agreements with its U.S. labor unions and General Motors Corp.

In addition, the committee said Delphi has failed to reach agreements with the creditors committee, the official committee of equity security holders, an ad hoc committee of trade claim holders or any other major constituency regarding a proposed reorganization plan.

Instead of using the ample time in which they had the exclusive right to file and solicit acceptances of a plan to negotiate a comprehensive restructuring deal that is satisfactory to constituencies, the committee said the company has proposed a transaction with third-party plan investors "containing terms that are objectionable to nearly all of these constituencies."

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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