Parties Negotiate Supplement to Previously Announced UAW Hourly Attrition
Program with Buyouts and Expanded Retirement Opportunities for Most UAW
Employees, Subject to Court Approval
Productive Framework Discussions Continue on Comparable Attrition Programs
with Other Major Unions
GM Agrees To Provide Financial Support for Incentive Retirement and Buyout
Options for Major Unions and Commits to Explore Additional Support
Delphi Granted Adjournment to August 11, 2006 to Accelerate Discussions
with Unions and GM
TROY, Mich., June 9 /PRNewswire/ -- Delphi Corp. announced today
significant progress in its discussions with the UAW and General Motors
Corp., including a Supplemental Agreement with the UAW expanding existing
retirement incentives and establishing a buyout program. The company
achieved a framework for GM support on additional incentive attrition
programs for its U.S. hourly workforce.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )
The current UAW special attrition program for retirement-eligible
employees, which covered employees with 27-30 years of credited service,
assuming Court approval, will expand to include a pre-retirement program
for employees with 26 years of credited service and provide buyouts for
UAW- represented hourly employees: $140,000 for employees with more than 10
years seniority or credited service, whichever is greater; $70,000 for
employees with less than 10 years seniority and pro-rated payments for
non-traditional employees. The new options added to the special attrition
program are enabled by financial support from GM.
Delphi continues framework discussions with the IUE-CWA, USW and other
unions to offer, with GM support, similar attrition programs for their
members, allowing Delphi to more rapidly transform its U.S. manufacturing
operations and soften the economic impact upon the hourly workforce.
In light of the recent progress, the U.S. Bankruptcy Court for the
Southern District of New York, today adjourned hearings on Delphi's
1113/1114 motion until Aug. 11, 2006, to allow the company, its unions and
GM additional time to fully focus on reaching comprehensive consensual
agreements. The Court also postponed commencement of the Section 365
hearing seeking cancellation of certain commercial contracts with GM until
at least Aug. 11, 2006. The Section 365 hearing is scheduled to commence
following the resolution or completion of the Section 1113/1114 hearings.
Orders authorizing the adjournment are expected to be docketed by the
Court early next week. The Court also rescheduled Delphi's monthly omnibus
hearing from June 16 to June 19, 2006.
"The Court has advised the parties to continue efforts for a consensual
resolution of the issues and work diligently toward an agreement outside of
court," said Delphi Chief Restructuring Officer John Sheehan. "We remain
committed to that outcome, and believe there is sufficient framework and
understanding between the parties to enable further progress in
negotiations during the recess period."
For more information about Delphi (Pink Sheets: DPHIQ), visit
http://www.delphi.com .
FORWARD LOOKING STATEMENT
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") financing 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 execute its business plans, including the
transformation plan described in the Company's March 31, 2006 press
release, and to do so in a timely fashion; the ability of the company to
attract, motivate and/or retain key executives and associates; the ability
of the company to avoid or continue to operate during a strike, or partial
work stoppage or slow down by any of its unionized employees; 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. 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:
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CONTACT:
Lindsey Williams, +1-248-813-2528, or Claudia
Piccinin, +1-248-813-2942, both of Delphi Corporation
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