Delphi in Trouble |
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"Having been unable to resolve our US legacy issues out of court, we determined it was in Delphi's best interest to address the US cost-structure issues through the Chapter 11 process now while our liquidity position is strong." 1 - Robert S. "Steve" Miller, Chairman and CEO, Delphi Corporation, on the reasons for filing for bankruptcy in October 2005. IntroductionOn October 08, 2005, the largest auto component manufacturer in the US, Delphi Corporation (Delphi), and its subsidiaries in the US filed for Chapter 112 protection in bankruptcy court in New York. The petition which did not include the non-US subsidiaries of Delphi, was filed a few days before a tougher bankruptcy law came into effect from October 17, 2005.
This would leave the workers in the dark. Delphi had been facing problems ever since it was spun off from General Motors Corporation (GM)3 in December 1999.
Delphi in Trouble - Next Page>>
1] "Delphi files for bankruptcy," www.money.cnn.com, October 08, 2005.
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