Delphi, Ener1 agree to restructure equity participations in EnerDel

By Jennifer Lanning Drey

Portland, Ore., July 14 - Delphi Corp. and Ener1, Inc. have executed a restructuring agreement under which the companies will restructure their respective equity participations in EnerDel, Inc., according to an 8-K filed with the Securities and Exchange Commission.

Under the agreement, Delphi will transfer to Ener1 its equity interest in EnerDel, including its EnerDel series A preferred stock, and will relinquish its right to appoint a member to the board of directors of EnerDel.

In exchange, Ener1 will transfer to Delphi 2,857,143 million shares of Ener1 common stock and $8 million in cash. Additionally, Ener1 will revise the exercise price for warrants held by Delphi exercisable into 750,000 shares of Ener1 common stock to $5.25.

The agreement must gain approval from the U.S. Bankruptcy Court for the Southern District of New York.

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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