| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Delphi Corp. > News item |
Delphi U.S. Trustee, unsecured creditors object to GM's request to be named to creditors committee
By Caroline Salls
Pittsburgh, March 6 - Delphi Corp.'s U.S. Trustee and its official committee of unsecured creditors objected to General Motors Corp.'s request to be added to the committee, according to Monday filings with the U.S. Bankruptcy Court for the Southern District of New York.
U.S. Trustee Deirdre A. Martini and the committee said Martini's formation of the committee was not arbitrary, and that GM has failed to demonstrate that appointment to the committee is necessary to adequately represent its interests in Delphi's Chapter 11 case.
The committee is comprised of seven members, including four trade creditors, a union, an indenture trustee and an institutional investor.
In making her decision, Martini said she considered financial information filed with the court, information obtained in meetings with the company and various creditors and information that came to light during an organizational meeting with creditors interested in serving on the committee.
According to the committee's objection, contrary to GM's statements in its motion, its interests as a general unsecured creditor are more than adequately represented by the current members.
"Most critically, the insertion of GM onto the committee would cripple if not destroy the committee's capacity to function as a fiduciary seeking to maximize the returns to unsecured creditors in these cases," the committee said in its objection.
A hearing is scheduled for Thursday.
Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8. Its Chapter 11 case number is 05-44481.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.