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

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of