Sunday, 19 April 2015
Last updated 19 hours ago
Apr 4 2008 | 11:18am ET
Hedge fund Appaloosa Management has sent Detroit into crisis mode, moving to pull out its $2.55 billion investment agreement with Delphi Corp.
New York-based Appaloosa, which led a six-member group that had agreed to provide a big chunk of the $6.1 billion that Delphi needs to exit bankruptcy protection, accused the auto parts maker of violating several tenets of its agreement, including “reaching agreements with [former parent General Motors] that are materially inconsistent with the agreement and the plan.” A GM affiliate had stepped in and agreed to play a larger role in the company’s exit financing after the credit crisis left Delphi short of the capital it needed.
Appaloosa, which revealed its exit from the deal in a termination letter filed today with the Securities and Exchange Commission, said its group would consider helping Delphi “in a capacity different than currently envisioned by the agreement.” But it also said it intended to seek an $82.5 million “alternative transaction fee” from the company for its alleged failure to live up to the terms of the agreement.
For its part, Delphi could sue Appaloosa for as much as $250 million in termination penalties.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…