Delphi given more time to develop reorganization plan |

Delphi given more time to develop reorganization plan

Daily Staff Report

NEW YORK – A New York bankruptcy court judge on Thursday gave Delphi Corp. management six more months to exclusively develop a reorganization plan.Delphi now has until Aug. 5 to file a plan to emerge from bankruptcy. The exclusivity period was set to expire in February. A vote by all creditors to approve this plan also has been pushed backed until Oct. 4.Delphi, which likely will seek a further extension of the period when it alone can propose a plan, expects to emerge from bankruptcy by 2007.The Troy, Mich.-based company filed for Chapter 11 bankruptcy protection Oct. 8 after failing to reach a restructuring agreement with the United Auto Workers and General Motors Corp., its former parent. Delphi was incorporated in 1998 as a subsidiary of General Motors and began operating as a separate entity in 1999, but General Motors is still its single largest customer.In the two years after its separation from GM, Delphi saw over $2 billion in net income. But, every year afterward – other than 2002 – Delphi saw losses. In the first six months of 2005, Delphi had a net loss of $608 million on sales of $13.9 billion.Vail, Colorado

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