Delphi asks U.S. Trustee not to appoint equity committee

By Caroline Salls

Pittsburgh, Dec. 21 - Delphi Corp. asked the U.S. Trustee in its Chapter 11 case not to appoint an official equity committee for the bankruptcy case at least until after it files its financial statements and the company's creditors have met, according to an 8-K filing with the Securities and Exchange Commission.

Shareholder Appaloosa Management, LP requested appointment of the equity committee to represent holders of Delphi's stock in the bankruptcy proceedings.

In its response, Delphi said that its board of directors will adequately represent all stakeholders in an attempt to maximize the enterprise value of the company and that it is highly unlikely that common equityholders will receive any value in the case because the equity securities are "hopelessly insolvent."

Delphi asked the U.S. Trustee to defer a decision on the appointment at least until it files its statements of financial affairs and schedules of assets and liabilities in January and until after the creditors meeting scheduled to be held in February.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

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