Delphi pension changes OK'd; hearing on global settlement, restructuring adjourned until Thursday

By Rebecca Melvin

New York, Sept. 23 - Delphi Corp. obtained court approval of modifications to its hourly and salaried pension program, despite an objection by creditors, at the U.S. Bankruptcy Court for the Southern District of New York Tuesday.

The pension program motion was one of five hearings scheduled for Delphi's 35th omnibus hearing Tuesday. The other hearings, including a contested motion to modify its global settlement and master restructuring agreements, were adjourned until Thursday.

Following a chambers conference among stakeholders, judge Robert Drain said that notwithstanding the time pressures Delphi faces in attempting to emerge from bankruptcy by the end of the year, it was his view that adjourning until Thursday was the best use of time, allowing additional meetings to take place among Delphi, GM and the creditors over outstanding issues.

The hourly and salaried pension program modifications amounted to freezes of existing plans and a replacement plan.

The official committee of unsecured creditors had objected to the timing of implementing such a replacement plan before it is known when or if loss making Delphi will be able to emerge from bankruptcy.

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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