Delphi Amends Bankruptcy Plan to Recover 39% of Value

Auto parts maker Delphi Corp. unveiled a new reorganization plan, telling unsecured creditors they now will recover 39%, compared with a 100% recovery under the original plan, Bloomberg reported Monday.

If Delphi keeps to a proposed schedule, the U.S. Bankruptcy Court in New York would hold a hearing in December to approve changes in the previous plan and authorize emergence from Chapter 11 bankruptcy, Bloomberg said.

Under the original plan, the equity of reorganized Delphi had a total estimated value of $8 billion, but with the deterioration in the auto industry and the amended plan’s structure, the new equity is now worth about $4.4 billion, Bloomberg reported.

The new plan was made possible following last month’s bankruptcy court approval of a new loan and a new settlement agreement with Delphi’s former parent company General Motors Corp., Bloomberg said.