Delphi asks for court approval to set maximum cap on unliquidated claims

By Reshmi Basu

New York, Sept. 10 - Delphi Corp. asked for court approval to set a maximum cap on unliquidated claims filed against the company, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the company's plan of reorganization, the total distribution relating to certain trade claims and other unsecured claims cannot exceed $1.7 billion.

Thus far, the court has expunged 9,100 proofs of claims while reducing the amount of asserted claims by $8.7 billion, Delphi said in the motion.

However, there are 300 contingent or unliquidated proofs of claims that do not flow through its Chapter 11 case or still need to be resolved.

The company said it is seeking to estimate all unliquidated claims solely for the purposes of tabulating votes on the plan and setting appropriate reserves.

Moreover, the company's request should not be construed as an estimate of probable liability of any unliquidated claim, Delphi said in the motion, adding that the amount only represents the maximum liability.

Under the motion, Delphi will give notice of the proposed maximum capped amount. If the claimant disagrees, an objection must be filed by Sept. 20. If parties cannot arrive at a consensus, an estimation hearing will be held.

Meanwhile, a hearing for the motion is scheduled for Sept. 27.

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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