AFSCME 3357-HOF'S BLOG

Delphi Needs a ReFi
Appaloosa says Nay Nay (Neigh Neigh, never mind)

Appaloosa Management LP, the lead invester in Delphi's bankruptcy reoganization, has pulled out of Delphi's bankruptcy exit financing plan. By doing so, Appaloosa not only yanked its $2.5 billion in exit capital, it completely killed Delphi's current plan of reorganization. Things get complicated, but as I understand it, Appaloosa didn't like General Motor's extra clout because GM increased its participation covering the lion's share of Delphi's bankruptcy debts. Also, there was supposed to be $6 billion in additional financing that didn't exist to Appaloosa's satisfaction.

In parting, Appaloosa asked for $62.5 million in breakup fees from Delphi. So, in other words, it looks like the Delphi bankruptcy is the song that never ends. Hence the tenuously linked video of the day.