Highland Capital Challenges Delphi's Current Reorganization Plan

In counterbalance to the $3.4 billion reorganization plan announced by auto parts company Delphi Corp. on Monday, the company's second largest shareholder (8.9%), hedge fund Highland Capital, is offering shareholders its own reorganization plan, valued at $4.7 billion. The former General Motors spinoff is currently filed for chapter 11 bankruptcy; any reorganization deal is predicated on Delphi reaching a deal with the United Auto Workers Union by January 31, 2007.

• Sources: Press Release, WSJ, CNN Money
• Related commentary: Cerberus Capital Eyes Delphi's Plants, Demands Lower Wages
• Potentially impacted stocks and ETFs: Delphi Corporation (DPHIQ.PK). Competitors: TRW Automotive Holdings Corp. (TRW), Visteon Corporation (VC)

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