Delphi investor Highland Capital believes its equity proposal exceeded value of Appaloosa-led plan

By Jennifer Lanning Drey

Portland, Ore., July 27 - Delphi Corp. investor Highland Capital Management LP said it submitted a bid to make an equity investment in Delphi that it believes was superior to the Appaloosa Management LP-led proposal accepted by the company, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

In the filing, Highland said that while it does not intend to submit testimony or documentary evidence on the Appaloosa-led plan, it does reserve the right to participate in discovery, appear at the hearing and cross-examine any witnesses.

Highland also said in the filing that it hopes the court will consider all evidence as to whether the Appaloosa proposal is in the best interest of Delphi, its estates, its creditors and its shareholders.

As previously reported, Delphi has accepted a $2.55 billion for an equity purchase and commitment agreement with affiliates of lead investor Appaloosa Management LP, Harbinger Capital Partners Master Fund I, Ltd., Merrill Lynch, Pierce, Fenner & Smith Inc., UBS Securities LLC, Goldman Sachs & Co. and Pardus Capital Management, LP

A hearing on the Appaloosa-led proposal is scheduled for Aug. 2.

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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