S&P: Tower, Delphi unchanged

Standard & Poor's said that recent court filings by unrated Tower Automotive Inc. and possible filings on Friday by unrated Delphi Corp. to reject certain labor agreements under Sections 1113, collective bargaining agreements, and 1114, retiree medical and life insurance benefits, of the U.S. Bankruptcy Code as part of their respective bankruptcy proceedings will not have an immediate impact on the ratings of automakers and auto suppliers that would be affected if Delphi or Tower workers were to strike.

Over the next several weeks, labor disruptions could stem from Tower's attempts to reject its respective labor agreements and Delphi's attempts to reject - if it files to do so, the agency added.

If there were to be a work stoppage strike by either Delphi or Tower workers, either before or after any court order permitting the rejection of the relevant contracts, the agency said it would first seek to understand the extent of the labor disruptions.

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