Delphi investment plan by Appaloosa terminated

By Caroline Salls

Pittsburgh, Nov. 8 - The proposed investment in Delphi Corp. by a group of investors including Appaloosa Management LP terminated on Nov. 6, according to a 13D/A filed Thursday with the Securities and Exchange Commission.

According to the filing, some of the conditions to the investment proposal were not met.

"On November 6, 2007, as a result of certain of the conditions set forth therein not being satisfied, the Revised Proposal terminated in accordance with its terms," the SEC filing said.

Under the Revised Proposal, put forward on Oct. 29, investors A-D Acquisition Holdings, LLC, Del-Auto, Merrill, UBS and Pardus DPH would have invested up to $2.55 billion through the purchase of $800 million of convertible preferred stock and $175 million of common stock plus backstopping a $1.575 billion rights offering to unsecured creditors. A-D Acquisition Holdings, LLC is an affiliate of Appaloosa and Del-Auto of Harbinger Harbinger.

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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