General Motors withdraws request for appointment to Delphi unsecured creditors committee

By Caroline Salls

Pittsburgh, March 9 - General Motors Corp. withdrew its motion to order the U.S. Trustee for Delphi Corp. to appoint GM to Delphi's official committee of unsecured creditors, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

General Motors said it continues to believe its appointment to the committee would be constructive and facilitate the negotiations toward a consensual resolution of the bankruptcy cases, but that it is clear from the responses to the motion filed by the committee and other parties that General Motors is viewed as an adversary.

"General Motors disagrees with that characterization, but the fact that others hold such a view means that its membership on the committee might be counterproductive, even if its appointment to the committee were ordered by the court," GM said in the filing.

According to its original motion, GM said that when Delphi's U.S. Trustee initially 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 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.

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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