Delphi investors Appaloosa, Harbinger discuss possible new investment agreement

By Jennifer Lanning Drey

Portland, Ore., July 10 - Delphi Corp. investors Appaloosa Management LP and Harbinger Capital Partners Master Fund I continue to engage in discussions with Delphi regarding a possible restructured investment in connection with the company's reorganization, the investors said in separate schedule 13D/A filings made Tuesday with the Securities and Exchange Commission.

Both investors also said potential agreements include "many elements similar to those contained in the investment agreement and the plan framework support agreement."

Delphi spokesman Lindsey Williams said Tuesday that Delphi terminated its equity purchase and commitment agreement and related plan framework support agreement with all involved investors in order to pursue another investor agreement.

Delphi has not announced any investors with whom it is in negotiations, but Williams said, "It is our belief that some of the investors [from the previous agreement] will be part of a transaction going forward."

The previous agreement was originally led by Cerberus Capital Management, LP and involved Appaloosa and Harbinger. However, Delphi announced in April that Cerberus was not expected to continue as a plan investor.

Delphi plans to have a new framework agreement in place by the end of July, Williams said.

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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