Delphi Is Expected to File for Chapter 11
Delphi Corp. is expected to file for bankruptcy protection today in New York, a person familiar with the situation said. The board of the Troy, Mich.-based auto parts maker was set to meet to make the final decision on entering Chapter 11, the source said. Delphi declined to comment.
Delphi, succumbing to high wage and benefit costs inherited from former parent General Motors Corp., has lined up financing from a consortium of banks to help it operate during the bankruptcy process.
The company’s filing would pressure its unions to come up with wage concessions. It would also take advantage of current bankruptcy rules, which will become stricter later this month when a new law takes effect.