Certain Employees Eligible For Proposed Special Retirements;
Buyouts of $140,000, $70,000 or $40,000 Available to Eligible
IUE-CWA-Represented Employees;
GM Financial Support Provided and Transition to GM Retirement Enabled
TROY, Mich., June 16 /PRNewswire-FirstCall/ -- Delphi Corp. (Pink
Sheets: DPHIQ) today announced another important step in its restructuring
activities. The company has reached agreement with the IUE-CWA and General
Motors (GM) Corp. on a special hourly attrition plan, similar to a plan
agreed to with the UAW which includes incentivized and early retirements
along with pre-retirement opportunities and certain buy-outs for eligible
employees. GM has agreed to provide 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. The plan, which is
subject to bankruptcy court approval, provides financial incentives for
certain types of retirements and permits the transition of up to 3,200
IUE-CWA represented Delphi employees to GM for retirement purposes. Delphi
will seek expedited court approval and will continue to focus on reaching a
comprehensive consensual agreement on all issues.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )
"We continue to be focused on the transformation of Delphi and this
attrition plan provides a stronger framework to position our successful
emergence from Chapter 11," said Delphi President and Chief Operating
Officer Rodney O'Neal. "This plan further enables an effective
transformation of our U.S. manufacturing and support operations."
Approximately 8,000 hourly IUE-CWA-represented employees are eligible
to participate in the program. Certain eligible U.S. hourly employees may
be offered a lump sum payment of $35,000 to retire. Eligible employees
under the program may elect buyout packages ranging from $40,000 to
$140,000.
Under the proposed program, 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.
Additionally, GM will fund certain post-retirement employee benefit
obligations related to Delphi employees who transition to GM under the plan
for purposes of retirement as well as half of employee buyout costs.
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 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 prepetition liabilities.
SOURCE Delphi Corp.
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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
http://www.prnewswire.com/comp/076666.html/
CONTACT:
Lindsey C. Williams of Delphi,
+1-248-813-2528, lindsey.c.williams@delphi.com
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