Delphi terminates Cerberus equity purchase agreement; new investment arrangements expected this month

By Caroline Salls

Pittsburgh, July 9 - Delphi Corp. has formally terminated its equity purchase and commitment agreement and related plan framework support agreement with Cerberus Capital Management, LP and other plan investors, according to a company news release.

The agreements were reached in December 2006, and Delphi announced on April 19 that it did not expect Cerberus to continue as a plan investor.

Delphi said it expects to enter into new framework agreements with plan investors later this month, and a board of directors meeting has been scheduled for July 16 to consider plan investor issues.

The company said these developments are not expected to prevent it from filing its plan of reorganization before the current expiration of the company's exclusivity period or to prevent it from emerging from Chapter 11 bankruptcy this year.

In addition, the company confirmed that its discussions with General Motors Corp. on a comprehensive settlement agreement had entered the documentation phase, and Delphi said it expects that a settlement with GM would be incorporated into the company's plan of reorganization rather than filed with the bankruptcy court for separate approval.

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.

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