Delphi creditors vote to accept reorganization plan
 

Brent Snavely
and Philip Nussel

Automotive News | January 17, 2008 - 12:01 am EST

DETROIT - Auto parts maker Delphi Corp. said late Wednesday that 81 percent of ballots cast by general unsecured creditors voted to accept its proposed reorganization plan.

The approval was another in a series of key benchmarks the company must hit to emerge from Chapter 11 bankruptcy protection during the first three months of the year. A confirmation hearing on the reorganization plan is scheduled to begin today in New York.

Delphi, which filed for bankruptcy protection in October 2005, said the vote tally excludes ballots cast by its former parent General Motors, plaintiffs in multi-district litigation and holders of interests.

Separately, Delphi said Thursday that it has reached an agreement to sell its wheel bearings business to Resilience Capital Partners for $44.2 million.

Delphi said the sale agreement includes its Sandusky, Ohio, production and engineering plant, machinery and equipment, intellectual property, contracts and inventory as well as the transition of the plant’s employees.

The sale is contingent on a competitive bidding process to be overseen by U.S. Bankruptcy Court in New York.

Delphi ranks No. 2 on the Automotive News list of the top 100 global suppliers with worldwide original equipment automotive parts sales of $24.40 billion in 2006.