Appaloosa Seeks Dismissal Of Delphi Lawsuit

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."


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR