13,000 Employees Potentially Eligible for Proposed Special Retirements;
GM to Provide Financial Support and Accept 5,000 Flowbacks
April 7th Bankruptcy Court Hearing Sought for Approval of UAW Plan
and Authority for Similar Plans for IUE-CWA, USW and Other
Represented Hourly Employees
TROY, Mich., March 22 /PRNewswire-FirstCall/ -- Delphi Corp.
(DPHIQ) today announced a critical milestone in its restructuring. The
company has reached agreement with the UAW and General Motors (GM) Corp. on a
special hourly attrition plan, including the opportunity for UAW-represented
Delphi employees to retire from GM. GM has agreed to provide substantial
financial support under the proposed plan. The plan enables a more rapid
transformation to a reduced labor cost structure across Delphi's U.S.
manufacturing operations. While subject to bankruptcy court approval, the
plan provides financial incentives for certain types of retirements to ease
the transition into retirement and permits the flow of up to 5,000 UAW-
represented Delphi employees to employment with GM.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )
"We remain focused on the transformation of Delphi in order to emerge
successfully from the Chapter 11 reorganization process and provide a strong
foundation for our future," said Delphi President and Chief Operating Officer
Rodney O'Neal. "An accelerated attrition plan will help enable the
transformation of our U.S. manufacturing and support operations into a much
more competitive cost base."
The proposed plan for eligible U.S. hourly employees includes normal and
early retirements and UAW flowbacks to openings at General Motors facilities.
Eligible UAW-represented Delphi employees may elect to retire from Delphi or
flow to and retire from GM.
Approximately 13,000 hourly union-represented employees may be eligible to
participate in the plan. Certain eligible U.S. hourly employees may be
offered a lump sum payment of $35,000 to retire. 5,000 UAW-represented
employees will have the opportunity to flowback to GM through the end of
September 2007.
Under the proposed plan, GM has agreed to assume the financial obligations
related to the lump sum payments to be made to eligible Delphi U.S. hourly
employees accepting normal or voluntary retirement incentives and certain
post-retirement employee benefit obligations related to Delphi employees who
flow to GM under the plan.
The company said the plan is subject to a number of conditions, including
approval by the U.S. Bankruptcy Court, which Delphi will seek to have heard at
the April 7 omnibus hearing. A motion seeking approval of the plan and
authority for similar plans for IUE-CWA, USW and other represented hourly
employees will be filed with the Bankruptcy Court later today, and a report
regarding the plan agreement will be filed on Form 8-K with the Securities and
Exchange Commission.
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.
Delphi filed for Chapter 11 reorganization of its operations in the United
States on Oct. 8, 2005 in the U.S. Bankruptcy Court of the Southern District
of New York and under the jurisdiction of Judge Robert Drain.
For more information about Delphi (Pink Sheets: DPHIQ) and its operating
subsidiaries, visit Delphi's media room at http://www.delphi.com/media/.
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 pre-petition
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 C. Williams, +1-248-813-2528,
lindsey.c.williams@delphi.com , or David Bodkin, +1-248-813-2532,
david.g.bodkin@delphi.com , both of Delphi Corporation
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