Delphi indenture trustee request to change unsecured creditors committee denied

By Caroline Salls

Pittsburgh, Feb. 8 - Delphi Corp. indenture trustee Law Debenture Trust Co. of America's request to change to the membership of the company's official committee of unsecured creditors was denied Wednesday by the U.S. Bankruptcy Court for the Southern District of New York.

Judge Robert D. Drain said Law Debenture Trust failed to establish sufficient cause for its request.

Law Debenture Trust is the trustee for Delphi's 8¼% junior subordinated notes due 2033 and its adjustable-rate junior subordinated notes due 2033.

According to the motion, the beneficiaries of these $412.37 million in notes represent, as a class, one of the seven largest unsecured claims against the company but are entirely unrepresented on the unsecured creditors committee.

Law Debenture Trust said the U.S. Trustee refused to appoint it to the committee because the committee adequately represents the interests of subordinated noteholders.

However, Law Debenture said no current member of the committee holds a claim of the size or purported priority as the subordinated notes.

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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