Restructuring at Delphi Corporation (A) Harvard Case Solution & Analysis

Delphi Corporation, operating under Chapter 11 bankruptcy, filed a reorganization plan in court, according to which a consortium of hedge funds led by Appaloosa Management will invest up to $ 2.6 billion in new shares. Also participating in the plan General Motors, which, as a former parent of Delphi, agreed to fund part of a massive pension and health care obligations of retirees, Delphi, incurred when he is separated from GM in the previous spin-offs. The company also had to look for significant financial concessions from the union United Auto Workers, without which it can not survive as a going concern. Complicates negotiations is significant uncertainty as to the cost and complexity of the business Delphi capital structure. "Hide
by Stuart C. Gilson, Sarah L. Abbott Source: Harvard Business School 25 pages. Publication Date: January 9, 2008. Prod. #: 208069-PDF-ENG

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