By Staff Report
Jun. 2, 2009
Delphi Corp. says it will not assume responsibility for its pension plans when it emerges from Chapter 11 bankruptcy protection, under modifications to its reorganization plan filed Monday, June 1, in U.S. Bankruptcy Court in New York.
According to a Delphi news release, the “remaining assets and liabilities of Delphi’s hourly pension plan will be addressed by GM.” General Motors accepted $2.1 billion of net unfunded liabilities for the hourly pension plan on September 29.
The auto parts maker’s combined defined-benefit plans totaled $6.147 billion as of December 31, according to its annual report.
Delphi said in its release that it explored “numerous alternatives” for the salaried plan and plans of certain subsidiaries, but none was “feasible” and as a result, the Pension Benefit Guaranty Corp. “may initiate involuntary termination” of the company’s salaried pension plan.
The Delphi statement said the PBGC “is expected to enter into a settlement with Delphi” that will result in it getting an unsecured claim once the firm emerges from Chapter 11.
PBGC spokesman Jeffrey Speicher said the agency has not reached a final settlement with Delphi, has not decided to terminate the Delphi plans and has held a substantial unsecured claim against the auto parts maker since it went into bankruptcy protection in October 2005.
Delphi spokesman Lindsey Williams did not return a call seeking comment.
The release said that as part of the new plan, Parnassus Holdings II, an affiliate of private equity manager Platinum Equity, will acquire and manage Delphi’s U.S. and non-U.S. operations after the bankruptcy for $3.6 billion. GM will provide Delphi with up to $250 million of capital through July 31 as part of the reorganization.
GM will acquire some of Delphi’s U.S. manufacturing operations and its global steering business.
The approval hearing for Delphi’s revised reorganization plan is scheduled for July 23.
We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.
Employee Engagement12 practical employee appreciation ideas for better engagement and retention
Summary Showing appreciation to your employees improves engagement and retention. There are 12 practica...
employee appreciation, engagement, HR, raccoons
ComplianceCalifornia fast food workers bill: why it’s more than meets the eye and how to prepare
Summary: California signs bill establishing a “fast food council” that has the power to raise the indus...
Employee Engagement7 statistics on employee turnover in 2022 every HR manager should be aware of
Summary July 2022 saw 5.9 million total separations – More Replacing a full-time employee can cost up t...
employee retention, employee turnover