Delphi, GM reach new deal on transfer of pensions
By The Associated Press Sunday, September 14, 2008NEW YORK - Delphi Corp. and General Motors Corp. said Friday they have reached a new deal on the automaker’s role in Delphi’s bankruptcy exit, including the transfer of employee pensions.
Under the new deal, GM’s financial support of Delphi’s emergence from court protection has grown to $10.6 billion, up from $6 billion in an earlier plan. The automaker will now take on $3.4 billion in pension obligations for hourly workers, instead of the $1.5 billion that was predicted earlier.
Delphi will seek court approval for the proposal Sept. 23. It said adopting the new agreements with GM was necessary to help it emerge from court protection as soon as possible.
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