Delphi asks court for default judgment against Furukawa Electric for breach of contract

By Reshmi Basu

New York, Oct. 24 - Delphi Corp. asked the court to render a default judgment against Furukawa Electric North America APD and Furukawa Electric Co., Ltd, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

In July 2006, Furukawa, a manufacturer of electric wire and cables, filed a $2.59 million claim against Delphi subsidiary DAS LLC for breach of contract. In March 2007, Delphi countered that it was Furukawa, not the debtors, who breached the contract and therefore Delphi should be rewarded a $25 million recovery.

On Sept. 26, Delphi served a demand for affirmative relief in connection with the counterclaim.

However, Furukawa has failed to respond. As a result, Delphi is seeking a default judgment against the company for $25 million plus interest.

A hearing is scheduled for Nov. 29.

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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