Delphi gets approval for exclusivity extension; GM granted participation rights in Appaloosa suit

By Andrea Heisinger

New York, July 31 - Delphi Corp. won approval Thursday to extend its exclusivity periods during a hearing in the U.S. Bankruptcy Court for the Southern District of New York.

U.S. Bankruptcy Court judge Robert D. Drain said there was a basis for filing a motion to extend the company's exclusive periods and approved it.

Delphi had asked to extend its exclusive plan-filing period to Oct. 31 from Aug. 31 and the solicitation period to Dec. 31 from Oct. 31.

A lawyer for the debtors of the auto-electronics manufacturing company said there had been a negotiation for the extension of the exclusivity agreement, and the debtors were in agreement. He also said there has been measured progress on a business plan to get out of Chapter 11 bankruptcy protection.

Other motions considered at Thursday's hearing had to do with General Motors Corp.'s participation in court proceedings. Delphi, a components supplier to GM, is embroiled in a lawsuit with investment company Appaloosa Management LP, which is scheduled for trial in 2009.

GM filed a motion to be allowed to participate in adversary proceedings as a party of interest.

A lawyer for the company clarified this to mean it would be sitting in on proceedings, including mediations, settlement conferences and discovery, but only as an observer and not a participant.

The judge approved the motion as modified to reflect the clarifications.

There was also an omnibus claims objection filed in the hearing, with the debtors asking that about 120 of 122 claims filed be expunged, which the judge approved on lack of opposition.

The Troy, Mich.-based Delphi's Chapter 11 case number is 05-44481. It filed for Chapter 11 protection on Oct. 8, 2005.

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