Delphi, agreement parties told by court to participate in mediation

By Caroline Salls

Pittsburgh, May 20 - Delphi Corp., its official committee of unsecured creditors, post-bankruptcy credit facility agent, tranche C lenders, General Motors Corp. and the Department of Treasury Auto Task Force have been ordered into mediation to clear the way for Delphi's emergence from bankruptcy, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Judge Robert D. Drain said he is satisfied that the parties have been negotiating in good faith.

However, the judge said he believes mediation could contribute to a consensual resolution of Delphi's Chapter 11 case within the accommodation period under its accommodation agreement.

Judge Cecila G. Morris has been appointed as the mediator. Drain said the results of the mediation will be non-binding, unless the parties agree otherwise.

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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