DETROIT -- The internal accounting scandal at Delphi Corp. has claimed two more high-ranking employees: Treasurer Pam Geller and John Blahnik, the former vice president of treasury, mergers and acquisitions.
Geller, 39, and Blahnik, 51, have resigned, Delphi said Thursday. The resignations were accepted as the supplier said it did not fully disclose its use of factoring in Europe to raise cash.
Factoring means that Delphi sold its accounts receivable, or money owed to it from other companies, at a discount. The buyer paid Delphi cash for the receivables, then collected the money from the companies that owed Delphi.
Blahnik was demoted to an non-officer position from vice president in March at the same time that Alan Dawes, 50, resigned as CFO under pressure from Delphi's board of directors. Dawes' resignation and Blahnik's demotion were part of Delphi's disclosure that improper reporting of rebates, credits or other payments from suppliers resulted in overstating cash flow from operations by $200 million in 2000 and $61 million in 2001.
John Arle, 57, was named treasurer and a vice president. He had been vice president of Delphi's corporate audit services.
Derek Kolano, 33, who reported to Arle, will take his boss' old job until a successor is named.
Delphi also said Thursday that its debt refinancing plan is on schedule and is expected to be completed by Wednesday. The supplier expects the financing plan to be valued at $2.8 billion.
The supplier also expects to release revised financial reports by June 30.
Delphi of Troy, Mich., ranks No. 1 on the Automotive News list of the top 150 suppliers to North America with North American original-equipment parts sales of $17.60 billion in 2004.
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