Delphi, GM exchange 'draft agreements' to help supplier emerge from bankruptcy protection
Saturday, December 2nd 2006, 3:15 pm
By: News On 6
DETROIT (AP) Talks are progressing between Delphi Corp. and former parent General Motors as they negotiate to try to help the auto parts supplier emerge from bankruptcy protection, according to court documents.
The two sides have exchanged ``draft agreements,'' according to a 110-page report that was filed late Thursday in U.S. Bankruptcy Court in New York, The Detroit News reported.
``The parties have exchanged various draft agreements and term sheets, which taken together, have advanced negotiations considerably,'' Delphi bankruptcy lawyer Jack Butler wrote in the report. ``The framework agreement remains a work in progress.''
GM has been trying to reach an agreement with Delphi and the supplier's creditors over the size of the automaker's obligation to its former parts unit, which was spun off, and its workers.
GM spokeswoman Renee Rashid-Merem said a resolution remains a top priority.
``These are very spirited and very productive negotiations and we're optimistic,'' she said.
Delphi, the nation's largest auto parts supplier, filed for bankruptcy protection in October 2005. A deal could help GM avoid getting caught in a strike at Delphi because of the supplier's wage cut demands.
On Thursday, Judge Robert Drain of the Southern District of New York approved a settlement of accounting fraud charges against Delphi and six people, including the supplier's former chief financial officer.