Delphi seeks to end health benefits for retirees
Bankruptcy
Troubled auto parts supplier Delphi Corp. has asked a bankruptcy judge to allow it to cancel health care and life insurance benefits for current and future salaried retirees, citing the steep downturn in the overall auto industry in recent months.
The request filed Wednesday with U.S. Bankruptcy Court in New York seeks to cut those benefits to 15,000 salaried retirees as soon as April 1. The Troy, Mich.-based company said the moves would save about $70 million annually, or $200 million through 2011.
Cutting the benefits also would allow Delphi to reduce its balance sheet liabilities by $1.1 billion, the company said.
Delphi said in the filing that its plan to emerge from bankruptcy protection had been based on assumptions of industrywide light vehicle production of 14.2 million units in 2009 and up to 16.3 million units in 2011.
The forecast also included expectations that General Motors Corp., the supplier's former parent and still largest customer, would build at least 3.15 million light vehicles in 2009 and up to 3.61 million in 2011.
But the overall industry took a turn for the worse in the fourth-quarter of 2008 and the U.S. based automakers now say that the best the industry will be able to do this year will be about 12 million to 12.5 million units, Delphi said in its filing.
Delphi has been operating under Chapter 11 protection since October 2005. A hearing on the request is set for Feb. 24.
Related listings
-
Delaware bankruptcy court restricts Nortel trading
Bankruptcy 01/16/2009The U.S. Bankruptcy Court for the District of Delaware ordered trading restrictions on shares of Nortel Networks Corp., the Canadian telecommunications equipment maker said Friday. Toronto-based Nortel said restrictions were set on trading of its com...
-
Chesapeake Corp. files for bankruptcy protection
Bankruptcy 12/30/2008Specialty packaging company Chesapeake Corp. has filed for Chapter 11 bankruptcy protection and plans to sell itself to a group of investors for about $485 million.The company's stock, which is traded over-the-counter, closed at 6 cents Monday, well ...
-
Ill. farmer pleads guilty in bankruptcy fraud case
Bankruptcy 11/27/2008A southern Illinois farmer pleaded guilty Wednesday to federal bankruptcy fraud charges, and his attorney said outside court that his client had nothing to do with the unsolved killings of a potential witness and his wife.Joseph Diekemper, 60, of Car...
Illinois Work Injury Lawyers – Krol, Bongiorno & Given, LTD.
Accidents in the workplace are often caused by unsafe work conditions arising from ignoring safety rules, overlooking maintenance or other negligence of those in management. While we are one of the largest firms in Illinois dedicated solely to the representation of injured workers, we pride ourselves on the personal, one-on-one approach we deliver to each client.
Work accidents can cause serious injuries and sometimes permanent damage. Some extremely serious work injuries can permanently hinder a person’s ability to get around and continue their daily duties. Factors that affect one’s quality of life such as place of work, relationships with friends and family, and social standing can all be taken away quickly by a work injury. Although, you may not be able to recover all of your losses, you may be entitled to compensation as a result of your work injury. Krol, Bongiorno & Given, LTD. provides informed advocacy in all kinds of workers’ compensation claims, including:
• Injuries to the back and neck, including severe spinal cord injuries
• Serious head injuries
• Heart problems resulting from workplace activities
• Injuries to the knees, elbows, shoulders and other joints
• Injuries caused by repetitive movements
For Illinois Workers’ Compensation claims, you will ALWAYS cheat yourself if you do not hire an experienced attorney. When you hire Krol, Bongiorno & Given, Ltd, you will have someone to guide you through the process, and when it is time to settle, we will add value to your case IN EXCESS of our fee. In the last few years, employers and insurance carriers have sought to advance the argument that when you settle a case without an attorney, your already low settlement should be further reduced by 20% so that you do not get a “windfall.” Representing yourself in Illinois is a lose-lose proposition.