Judge says he will grant Delphi request to end benefits for 15,000

[Bozita]

Source: Detroit News

Tuesday, February 24, 2009
Judge says he will grant Delphi request to end benefits for 15,000
David Shepardson / Detroit News Washington Bureau


NEW YORK -- A federal bankruptcy judge said today he planned to grant Delphi Corp. permission to cancel its salaried retiree health care and life insurance -- a move that will end benefits for 15,000 people as soon as April 1 and save the Troy-based auto supplier more than $70 million annually.

U.S. Bankruptcy Judge Robert Drain said he also planned to approve a temporary committee to review whether some retirees, including those who retired on disability, have special rights to continued health insurance.

But Drain said Delphi had a right to terminate health and life insurance benefits and that they were not vested benefits.

Delphi, which sought bankruptcy protection in October 2005, has struggled to obtain financing to emerge. In the face of a sharply lower auto market, it has sought to conserve cash.

Read more: http://detnews.com/apps/pbcs.dll/article?AID=/20090224/AUTO01/902240411

[safeinOhio]

1. I'll bet some CEO will get a big bonus

for sliding that through.

[LiberalFighter]

4. Executives should not be eligible to receive bonuses until 2 years after bankruptcy.

Their salaries should be reduced at least 25% or the percent hourly wages have been reduced. Whichever is more.

[bluedeminredstate]

2. This will affect my retired B-I-L

He's in his late 60's and is trying to find a job since they've cut his benefits already. 34 years for the company and he's getting the shaft. It sucks.

[Ernesto]

3. Maybe this is why stocks are up today!............ n-t