Lockport Union-Sun & Journal Online

Delphi

October 7, 2009

BUSINESS: Delphi emerges from bankruptcy

<b><i>General Motors will take over Lockport plant today</b></i>

What was known as Delphi Thermal Systems will become a General Motors facility today, after Delphi announced its emergence from bankruptcy almost four years to the day it started the process.

The Upper Mountain Road plant will start today as a GM plant, according to Delphi spokesperson Claudia Piccinin. The sale of four Delphi plants back to GM were part of the company’s plan to emerge from its four-year odyssey. Delphi’s plan was finalized Tuesday when a deal selling most of Delphi’s assets to lenders was approved.

“It is final, Wednesday is day one,” she said.

Delphi spun off from GM in 1999 and remained its largest parts supplier. On Oct. 8, 2005, Delphi filed for Chapter 11 bankruptcy protection and was kept afloat largely by $12.5 billion from GM. Delphi almost emerged last year, but a group of investors pulled out at the last minute. In July, lenders — led by Elliot Management Corp. and Silver Point Capital — successfully bid $3.5 billion in loans to Delphi to acquire its other facilities not returned to GM. The bid was the centerpiece to the restructuring plan approved in court that allowed Delphi to emerge.

Along with the Lockport plant, GM will also purchase Delphi’s steering business and manufacturing plants in Rochester; Kokomo, Ind.; and Wyoming, Mich. Having the Lockport plant return to GM was a great thing, according to retiree James Gugliuzza. Gugliuzza is a Delphi retiree who also worked 20-plus years when the plant was under the GM name.

“GM has always been a part of Lockport. There is a long history between the two,” he said. “It’s just great to see them back together. To me, GM was a part of the Lockport family, and Delphi never really was.”

What is left of Delphi will now become a private company called Delphi Holdings, owned by lenders; current Delphi leader Rodney O’Neal will remain president and CEO. He said in a statement that Delphi will now be able to invest in developing new technology and products. Delphi will now have four plants in the U.S., down from the 44 facilities it had in 1999.

“We are clearly focused on game-changing technologies that meet market demands and help address societal concerns in an intense global environment,” O’Neal said. “We expect that the industry and the competitive environment will continue to be demanding, but the restructuring we have already completed creates a strong platform and we expect to capitalize on that.”

Contact reporter Joe Olenick at 439-9222, ext. 6241.

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Delphi
  • Lockportemployeepicture.JPG Still no answers for Delphi retirees

    Twenty-two thousand Delphi Corp. retirees found out 16 months ago their pensions were being turned over to a federal agency. In July 2009, the Pension Benefit Guaranty Corp. took control of those pensions, which meant possible cuts of anywhere from 30 percent to 70 percent in the retirement plans.
    Hourly employees faced the same situation, except General Motors agreed to top off those pensions. Salaried retirees did not have their pensions topped off by anyone.
    Now they want to know why. Letters, testimonies and speeches have asked the U.S. Treasury Department, the department’s Auto Task Force and the Obama Administration for information on that decision was made.

    August 1, 2010 1 Photo

  • Delphi retirees group came together quickly

    Salaried workers and retirees lost big chunks of their pensions in July 2009, and almost as quickly, the Delphi Salaried Retiree Association was formed.
    The DSRA actually started forming when it was announced Delphi was eliminating health care and life insurance benefits for salaried retirees as of April 1, 2009. There are roughly 22,000 salaried Delphi retirees nationwide.

    August 1, 2010

  • DELPHI: UAW supports salaried retirees' fight for pension equity The United Auto Workers are supporting Delphi salaried retirees who are fighting to save their pensions.

    January 27, 2010

  • DELPHI: Salaried retirees gain key support in fight against pension cuts Delphi Corp. salaried retirees and employees have gained a vote of support from some members of the U.S. House of Representatives.

    December 3, 2009

  • BUSINESS: Delphi emerges from bankruptcy

    October 7, 2009

  • DELPHI: Approval of bankruptcy exit plan hailed by local political leaders Local political leaders hailed as good news Thursday’s announcement about the approval of Delphi Corp.’s bankruptcy exit plan.

    July 31, 2009

  • BUSINESS: Delphi asking court for bid approval A hearing on Delphi Corp.’s plan to hand control of the company to its lenders and eventually end its nearly four-year stay in Chapter 11 got under way Wednesday in New York City with arguments from attorneys representing the auto supplier and some of those objecting to the plan.

    July 30, 2009

  • DELPHI: Auto parts maker in court today on bankruptcy exit plan Delphi Corp. will be in court today asking for approval of a modified plan that could end a four-year adventure in Chapter 11 bankruptcy.

    July 28, 2009

  • DELPHI: Creditors win in auction for company's assets Auto parts maker Delphi Corp. said Monday its creditors won out over a California private-equity firm in an auction for the company’s assets as it moves to emerge from bankruptcy protection.

    July 27, 2009

  • DELPHI: GM buy-back progresses; retiree benefits gain support Support has come for both General Motors’ plan to buy back Delphi plants and for Delphi’s salaried retirees.

    July 13, 2009

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