Delphi Files For Bk
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A large area corporation filed for bankruptcy on Saturday, October 8, 2005. This company was previously part of GM Corporation and through their act of filing will impact this company a great deal as well. This is important as GM has run into some problems of their own that they may need to resolve before taking on the problems of another company that they were formerly part of. The agreement that they made to uphold the pensions, life and health insurance of those who worked for Delphi may put them in this position.
GM Corporation cannot afford to take this on. It is my belief when they made this arrangement, the corporation did not think anything would happen to the company and everything would be alright. Unfortunately, this has not shown to be the case. Delphi has now taken the road of being protected while GM Corporation still has to protect themselves as well as the pensions of those who formerly worked for them. This is quite an interesting predicament to be in.
Delphi has made motions to assist GM since they have had to file bankruptcy. They are attempting to stop the health and life insurance benefits that GM is paying for the Delphi retirees as of mid-December. This will save GM some money. They at this time are looking at spending billions of dollars to take care of what they agreed to in the past. My personal opinion is that other companies will learn from this companys mistake.
Delphi just recently hired Mr. Miller three months ago hoping that he would turn around their operations, but to their dismay have seen he has not. He did make the comment that the company would file bankruptcy before the deadline if in fact they had to. Hopefully, he will be able to turn this company into a profit maker again. At this time, they are only losing money and need some time to regain their confidence and that of those around them.
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