TROY, Mich. — A federal bankruptcy court is giving vehicle electronics company Delphi Corp. until Aug. 5, 2006 to exclusively file a reorganization plan. The original deadline was Feb. 6.
Delphi says it expects to emerge from Chapter 11 in 2007 and may request more extensions on the reorganization filing. The exclusivity provision prevents an outsider from filing a reorganization plan and gaining control of the bankrupt company.
The company has indicated it may modify its initial proposal, which would reward senior managers with as much as $500 million in bonuses and stock grants by the time Delphi emerges from bankruptcy. The plan has come under fire from creditors and unions.
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