Company exploring workable labor solution and entering 'quiet period'
until agreement is reached
TROY, Mich., Dec. 19 /PRNewswire-FirstCall/ -- Delphi Corp. reaffirmed
today its commitment to reaching a consensual agreement with its unions and
General Motors on a comprehensive restructuring. The company also announced
in light of GM's recent engagement and discussions with the UAW, Delphi is
withdrawing its Nov. 15 proposal to its unions which had been based solely on
Delphi's financial constraints. Following these discussions, Delphi said it
will continue to work toward creating effective solutions acceptable to Delphi
and its stakeholders, as well as to the UAW, GM and other unions. The company
said that to further facilitate discussions it would defer the filing of
Section 1113/1114 motions in the bankruptcy court until at least February 17.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )
The company's primary short-term focus is to reach consensual agreements
enabling competitiveness for Delphi's core U.S. operations, by modifying
current labor agreements and realigning Delphi's global product portfolio and
manufacturing footprint to preserve the company's core business. The
consensual agreements will help preserve the value of the company, provide
viable jobs in the U.S. for employees and better serve customers globally.
Delphi is committed to completing its transformation plan as quickly as
possible and to that end, does not intend to comment further on discussions
with the unions or GM.
The company noted that depending on the outcome of discussions, it may be
necessary to return to its Nov. 15 proposal.
Additional information regarding Delphi's filing under the United States
Bankruptcy Code, including access to court documents and other general
information about the chapter 11 cases, is available online at
http://www.delphidocket.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 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 SEC reports, including, but not limited to the
annual report on Form 10-K for the year ended December 31, 2005 and its most
recent quarterly report on Form 10-Q 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 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. No assurance can be given as to what values, if any, will be
ascribed in the bankruptcy proceedings to each of these constituencies.
Accordingly, the Company urges that the appropriate caution be exercised with
respect to existing and future investments in any of these liabilities and/or
securities.
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, or Claudia
Piccinin, +1-248-813-2942, both of Delphi Corporation
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