Work Progressing in Consensual Talks; 3-Way Discussions to Continue
TROY, Mich., Feb. 17 /PRNewswire/ -- Delphi Corporation
(Pink Sheets: DPHIQ) announced today that based upon progress in discussions
with its major unions and General Motors, Delphi will continue talks in an
effort to achieve a comprehensive agreement no later than March 30, 2006.
Absent agreement with all parties, Delphi will file no later than March 31,
2006 its motion under Sections 1113 and 1114 of the U.S. Bankruptcy Code to
initiate the process of seeking court authorization to reject the collective
bargaining agreements and terminate hourly post-retirement health care plans
and life insurance.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )
"While major obstacles and difficult issues remain to be resolved, the
discussions to date with GM and our major unions helped frame the concerns and
objectives of each organization," said Delphi Chairman and CEO Robert S.
"Steve" Miller.
"As we have said before, we remain committed to reaching a consensual
agreement. This deadline should provide us sufficient time to deal with the
complexities inherent in fashioning practical and workable solutions, and an
effective agreement that works for all of us," Miller said.
Previously, Delphi had announced it would file the motion no sooner than
Feb. 17, 2006.
Delphi's Chapter 11 case for reorganization of its U.S. operations is
being heard in the Southern District of the U.S. Bankruptcy Court.
For more information about Delphi (Pink Sheets: DPHIQ), visit
http://www.delphi.com .
This press release, as well as other statements made by Delphi may contain
forward-looking statements within the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, that reflect, when made, the
Company's current views with respect to current events and financial
performance. Such forward-looking statements are and will be, as the case may
be, subject to many risks, uncertainties and factors relating to the Company's
operations and business environment which may cause the actual results of the
Company to be materially different from any future results, express or
implied, by such forward-looking statements. Factors that could cause actual
results to differ materially from these forward-looking statements include,
but are not limited to, the following: the ability of the Company to continue
as a going concern; the ability of the Company to operate pursuant to the
terms of the debtor-in-possession ("DIP") facility; the Company's ability to
obtain court approval with respect to motions in the chapter 11 proceeding
prosecuted by it from time to time; the ability of the Company to develop,
prosecute, confirm and consummate one or more plans of reorganization with
respect to the chapter 11 cases; risks associated with third parties seeking
and obtaining court approval to terminate or shorten the exclusivity period
for the Company to propose and confirm one or more plans of reorganization,
for the appointment of a chapter 11 trustee or to convert the cases to chapter
7 cases; the ability of the Company to obtain and maintain normal terms with
vendors and service providers; the Company's ability to maintain contracts
that are critical to its operations; the potential adverse impact of the
chapter 11 cases on the Company's liquidity or results of operations; the
ability of the Company to fund and execute its business plan; the ability of
the Company to attract, motivate and/or retain key executives and associates;
and the ability of the Company to attract and retain customers. Other risk
factors are listed from time to time in the Company's United States Securities
and Exchange Commission reports, including, but not limited to the Annual
Report on Form 10-K for the year ended December 31, 2004 and its most recent
quarterly report on Form 10-Q for the quarter ended September 30, 2005 and
current reports on Form 8-K. Delphi disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any
reorganization plan ultimately confirmed, can affect the value of the
Company's various pre-petition liabilities, common stock and/or other equity
securities. Additionally, no assurance can be given as to what values, if
any, will be ascribed in the bankruptcy proceedings to each of these
constituencies. A plan of reorganization could result in holders of Delphi's
common stock receiving no distribution on account of their interest and
cancellation of their interests. As described in the Company's public
statements in response to the request submitted to the United States Trustee
for the appointment of a statutory equity committee, holders of Delphi's
common stock and other equity interests (such as options) should assume that
they will not receive value as part of a plan of reorganization. In addition,
under certain conditions specified in the Bankruptcy Code, a plan of
reorganization may be confirmed notwithstanding its rejection by an impaired
class of creditors or equity holders and notwithstanding the fact that equity
holders do not receive or retain property on account of their equity interests
under the plan. In light of the foregoing and as stated in its October 8,
2005 press release announcing the filing of its chapter 11 reorganization
cases, the Company considers the value of the common stock to be highly
speculative and cautions equity holders that the stock may ultimately be
determined to have no value. Accordingly, the Company urges that appropriate
caution be exercised with respect to existing and future investments in
Delphi's common stock or other equity interests or any claims relating to
prepetition liabilities.
SOURCE Delphi Corporation
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Related links:
http://www.delphi.com/media
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO PRN Photo
Desk photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/076666.html
CONTACT:
Lindsey Williams, +1-248-813-2528,
lindsey.c.williams@delphi.com or Claudia Piccinin,
+1-248-813-2942, claudia.piccinin@delphi.com both of Delphi
Corporation
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