Delphi $9.04 million master swap agreement settlement approved

By Caroline Salls

Pittsburgh, Feb. 16 - Delphi Corp. obtained court approval of a settlement with Barclays Bank under which Delphi will recover $9.04 million from Barclays in connection with the bank's early termination of a master swap agreement, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The settlement payment represents the full amount of a termination payment that became due when Barclays terminated the master agreement.

According to the motion, Barclays Bank asserted that it had a right to withhold the termination payment to protect its alleged setoff rights on account of any indemnification payment obligations that may be owed to it by Delphi under the master service agreement and claims that have been asserted against Barclays Capital.

Delphi said it does not owe any indemnification obligation to Barclays Bank.

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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