TROY, Michigan -- Delphi Corporation (NYSE:DPH) announced today that in support of its reorganization efforts it has received interim Court approval to continue to utilize its existing cash management system, as well as approval to continue paying all salaried and hourly employees in the U.S. under Delphi's current compensation and benefit programs. The Honorable Arthur J. Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York entered "bridge" orders Saturday afternoon granting this and other relief, including the authority to continue customer programs.
As previously announced, a permanent case assigned Bankruptcy Judge will be selected on Tuesday, October 11, 2005, and the Company anticipates that a full hearing on the "first day" motions will be conducted later that day. The Company will provide further details of the "first-day" hearing when they become known.
On Saturday, October 8, Delphi and 38 of its domestic U.S. subsidiaries filed voluntary petitions for business reorganization under Chapter 11 of the U.S. Bankruptcy Code. Delphi's non-U.S. subsidiaries were not included in the filing and will continue their business operations without supervision from the U.S. courts.
"We greatly appreciate the Court's prompt entry of these bridge orders," Robert S. "Steve" Miller, Delphi's chairman and CEO. "The relief granted by the Court today will help ensure that there is a seamless transition into Chapter 11 for Delphi's U.S. operations, especially with respect to our U.S. employees who should not experience any disruption in compensation or benefits. We look forward to the hearing on Tuesday and the Court's timely consideration of the remainder of our first-day motions."
Mr. Miller stressed that there should not be any immediate impact upon Delphi's plants and facilities or Delphi's employees. "All employees -- both salaried and hourly -- are expected to continue to report to work as always, and our plants should continue normal operations as we continue to meet the quality, scheduling, delivery and production needs of our customers."
More information on Delphi's U.S. restructuring is available at www.delphi.com. Access to Court documents, including the bridge orders, and other general information about the Chapter 11 cases is available at www.delphidocket.com. Delphi has also set up two separate toll-free information lines: one for specific supplier inquiries, 866-688-8679 or 248- 813-2601, and another for employees, customers, shareholders and other interested parties, 866-688-8740 or 248-813-2602.
