Delphi seeks temporary pension plan funding waiver to transfer plan to GM

By Caroline Salls

Pittsburgh, Oct. 9 - Delphi Corp. requested court approval of a temporary hourly pension plan funding waiver that will allow the company to transfer the pension plan to General Motors Corp., according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The waiver applies to the pension plan funding obligations for the plan year ended Sept. 30.

Without the waiver, Delphi said it would still have to make redundant cash contributions to the plan even with the transfer of the plan to GM.

In exchange for Internal Revenue Service approval of the funding waiver, Delphi agreed to file its Chapter 11 plan of reorganization by Dec. 31; satisfy any minimum funding requirements for the plan year ended Sept. 30 within five days of the effective date of the plan of reorganization, which must occur no later than Feb. 29; and contribute $20 million to the hourly plan within five days of the plan effective date.

A hearing is scheduled for Oct. 25.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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