Wednesday, 24 August 2016
Last updated 7 hours ago
Jul 28 2008 | 2:00am ET
Lawyers for hedge fund Appaloosa Management asked a federal bankruptcy judge to dismiss auto-parts maker Delphi Corp.’s lawsuit over the collapse of its $2.55 billion investment deal.
The agreement between Delphi and an investor group led by Appaloosa was part of the former’s bid to exit Chapter 11 bankruptcy protection. Appaloosa quit the deal in April, alleging that Delphi had contravened several of its tenets. The hedge fund was reportedly unhappy with Delphi’s approach of former parent General Motors for financing to meet the deal’s requirements.
Appaloosa told U.S. Bankruptcy Judge Robert Drain that the agreement allowed it to withdraw for any reason, regardless of whether Delphi had fulfilled its end of the deal.
Drain said he would rule today, but did not appear sympathetic to Appaloosa's argument, calling the GM claims "beyond me."