Appaloosa/Cerberus group agrees to Delphi stake


CHICAGO, Dec 18 (Reuters) - Delphi Corp. said on Monday that a group led by Appaloosa Management LP and Cerberus Capital Management LP has agreed to invest up to $3.4 billion, giving the private equity investors a large stake in the auto parts maker when it emerges from bankruptcy.

Delphi, which said it would file a framework agreement for a plan of reorganization on Monday, said the deal is contingent on the company reaching agreements with former parent General Motors Corp. and its labor unions.

Delphi, which filed for bankruptcy in the United States in October 2005, has outlined plans to cut thousands of hourly and salaried workers, close or sell 21 of 29 U.S. union plants and drop several business lines to reorganize.



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