Posted By: Tsu-Han (Ina) Chang
Written By: Christopher Scinta
Feb. 6 (Bloomberg) -- Delphi Corp., the biggest supplier to General Motors Corp., said its value has fallen so much that the company may not be able to cover debts accrued since filing for bankruptcy in 2005, including a $4.35 billion loan.
The “extremely low volume production environment in the global automotive industry” has cut the projected value of the reorganized company, Delphi said. To conserve cash, Delphi asked U.S. Bankruptcy Judge Robert Drain to let it end health care benefits for retirees who were salaried workers, saying the move would save about $70 million a year and eliminate as much as $1.1 billion of liabilities from its balance sheet.
Written By: Christopher Scinta
Feb. 6 (Bloomberg) -- Delphi Corp., the biggest supplier to General Motors Corp., said its value has fallen so much that the company may not be able to cover debts accrued since filing for bankruptcy in 2005, including a $4.35 billion loan.
The “extremely low volume production environment in the global automotive industry” has cut the projected value of the reorganized company, Delphi said. To conserve cash, Delphi asked U.S. Bankruptcy Judge Robert Drain to let it end health care benefits for retirees who were salaried workers, saying the move would save about $70 million a year and eliminate as much as $1.1 billion of liabilities from its balance sheet.
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