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Published on 2/21/2006 in the Prospect News Distressed Debt Daily.

General Motors asks to be appointed to Delphi's unsecured creditors committee

By Caroline Salls

Pittsburgh, Feb. 21 - General Motors Corp. asked the bankruptcy court to order the U.S. Trustee for Delphi Corp. to appoint GM to Delphi's official committee of unsecured creditors, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

GM said that when Delphi's U.S. Trustee originally solicited requests to serve on the committee, GM, the United Auto Workers and the Pension Benefit Guaranty Corp. expressed interest in serving on the committee, but were not appointed.

Since then, the United Auto Workers and the Pension Benefit Guaranty Corp. have subsequently been appointed as ex officio members. GM said it is now the only major constituent in Delphi's case that is not a member of the committee.

According to the motion, discussions in connection with the GM request were held among the company, the U.S. Trustee, Delphi and the committee.

Although GM said it was prepared to accept appointment to the committee as an ex officio member and the U.S. Trustee and Delphi did not oppose the appointment, the committee objected to any GM membership.

GM said the U.S. Trustee was not prepared to appoint GM as a committee member in any capacity without the consent of the committee.

A hearing is scheduled for March 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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