Delphi gets temporary pension plan funding waiver to transfer plan to GM

By Reshmi Basu

New York, Oct. 25 - Delphi Corp. obtained court approval Thursday of a temporary hourly pension plan funding waiver that will allow the company to transfer the pension plan to General Motors Corp.

The waiver applies to the pension plan funding obligations for the plan year ended Sept. 30.

As previously reported, without the waiver, Delphi said it would still have to make redundant cash contributions to the plan even with the transfer of the plan to GM.

In exchange for Internal Revenue Service approval of the funding waiver, Delphi agreed to file its Chapter 11 plan of reorganization by Dec. 31; satisfy any minimum funding requirements for the plan year ended Sept. 30 within five days of the effective date of the plan of reorganization, which must occur no later than Feb. 29; and contribute $20 million to the hourly plan within five days of the plan effective date.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.