Cerberus group's plan to buy Delphi hits hurdle: WSJ

[Eugene]

Source: Reuters

Cerberus group's plan to buy Delphi hits hurdle: WSJ

51 minutes ago

NEW YORK (Reuters) - An investor group's plans to buy bankrupt
auto parts maker Delphi Corp. has hit a snag, with the union not
agreeing to cut future wages and benefits for new hires, the Wall
Street Journal reported on its Web site on Tuesday.

The group of investors, led by Cerberus and Appaloosa Management,
has offered to back a $3.4 billion financing plan to support Delphi's
emergence from bankruptcy.

Cerberus has expressed concerns to the union, GM and Delphi about
the auto parts maker's profitability a few years from now, when new
hires's pay increases, the Journal reported.

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Read more: http://news.yahoo.com/s/nm/20070417/bs_nm/delphi_cerberus_uaw_dc