Delphi gains Furukawa settlement approval; GM financing arrangement adjourned until Sept. 23

By Rebecca Melvin

New York, Aug. 26 - Delphi Corp. received court approval of its settlement with Furukawa Electric North America APD and Furukawa Electric Co. Ltd. at the U.S. Bankruptcy Court for the Southern District of New York on Tuesday.

A second matter regarding an amendment to Delphi's General Motors Corp. financing arrangement has been adjourned to Sept. 23.

The Delphi-Furukawa stipulation resolves a long-running dispute between Delphi and the Furukawa entities over an alleged breach of a sensor contract by Furukawa Electric and proofs of claim and alleged damages by Furukawa against Delphi.

Under the settlement, Furukawa will pay Delphi $16.5 million and rights to assert other claims will be waived.

In addition, a claim of $4.87 million against a Delphi subsidiary provided by an Aug. 5 settlement will be treated as an allowed general unsecured non-priority claim.

The claim is allocated among Goldman Sachs for $4 million, Silverpoint for $756,206.56; and Furukawa for $118,472.96 of the claim.

The GM arrangement amendment motion has received objections from CR Intrinsic Investors LLC and Highland Capital Management LP.

Troy, Mich.-based Delphi is an automotive electronics manufacturer. It filed for bankruptcy on Oct. 8, 2005, and its Chapter 11 case number is 05-44481.

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