Key Investor Terminates Delphi Pact
Friday April 4, 10:21 am ET
By Vinnee Tong, AP Business Writer
Appaloosa Hedge Fund Terminates $2.55B Investment Agreement With Auto Parts Supplier Delphi
NEW YORK (AP) — An private equity group said Friday it has terminated its agreement to invest $2.55 billion in auto parts supplier Delphi Corp., which has been trying to emerge from bankruptcy protection.
The hedge fund Appaloosa Management LP made the announcement as Delphi, a major parts supplier to General Motors Corp., faced a Friday deadline to raise $6.1 billion in loans to help it out of bankruptcy.
Appaloosa said Delphi has breached an agreement it had with the investor group.
The Appaloosa-led investment was an essential pillar in Delphi’s reorganization, which has been held up because of a tight credit market. The loss of the deal puts Delphi’s plan to exit bankruptcy at risk.
GM depends heavily on a steady supply of parts from Delphi, which was its former parts subsidiary until a 1999 spin-off and remains the automaker’s biggest supplier.
A message seeking comment was left Friday morning with GM spokeswoman Renee Rashid-Merem.
Appaloosa asserted Friday that it is now owed an $82.5 million fee, because Delphi breached their agreement by seeking an alternative transaction. It referred in its filing to Delphi’s effort to take more loans from GM, a move that threatened the power of the investor group.”
see—> http://biz.yahoo.com/ap/080404/delphi_bankruptcy.html?printer=1
also see re one major airline —> http://freeinternetpress.com/story.php?sid=15794
2008-03-18 15:42:31 (2 weeks ago)
Posted By: Intellpuke
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Delta Air Lines said Tuesday it will offer voluntary severance payouts to roughly 30,000 employees - more than half its work force - and cut domestic capacity by an extra 5 percent this year as part of an overhaul of its business plan to deal with soaring fuel prices.
Executives at Atlanta-based Delta said in a memo to employees that the airline’s goal is to cut 2,000 frontline, administrative and management jobs through the voluntary program, attrition and other initiatives.
Delta spokeswoman Betsy Talton said that if more than that amount agree to take the voluntary severance, that will be allowed. The severance program primarily affects mainline Delta employees. It will not affect Delta pilots, who have a union contract with the company, and employees at Delta regional carrier Comair, which is based in Erlanger, Kentucky.
One part of the program is for employees who are already eligible for retirement or for those whose age and years of service add up to at least 60, with 10 or more years of service. The other part of the program is an “early-out” offer for frontline employees - such as flight attendants and gate and ticket agents - with 10 or more years of service and for administrative and management employees with one or more years of service.
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( my comment:so much for job security and healthcare needs after you are worn out and used up!)
No is not a complete answer! Please explain Why No!?