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Published on 1/4/2006 in the Prospect News Distressed Debt Daily.

Delphi auto workers' union asks to be appointed to unsecured creditors' committee

By Caroline Salls

Pittsburgh, Jan. 4 - Delphi Corp.'s auto workers union asked the U.S. Bankruptcy Court for the Southern District of New York to direct the U.S. Trustee for the company's Chapter 11 case to appoint it to the official committee of unsecured creditors for the case, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

In support of its motion, The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) said it is the exclusive collective bargaining representative of about 24,000 Delphi employees at 21 production facilities throughout the country, in turn representing the largest contingent of hourly employees represented by labor organizations.

UAW said it is also the "authorized representative" of about 9,800 retirees receiving collectively bargained retiree health benefits.

UAW has estimated claims against Delphi for $30.25 million in accrued vacation and other paid time off obligations and $4.6 billion in retiree health benefits.

"Because the committee does not consist of the creditors holding the largest unsecured claims and does not adequately represent the diverse interests in the case, UAW seeks court review of the U.S. Trustee's appointment decision and an order directing the appointment of UAW to the committee," the union said in its motion.

UAW said the U.S. Trustee previously denied its request to be appointed to the committee.

A hearing is scheduled for Feb. 9.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8. Its Chapter 11 case number is 05-44481.


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