DETROIT -- Delphi Corp. can expect help from former parent General Motors as well as the UAW in avoiding a bankruptcy filing, a prominent auto analyst says.
John Casesa of Merrill Lynch in New York says his optimism is based on a conversation with Steve Miller, Delphi's new CEO.
Miller told Casesa he had met with GM CEO Rick Wagoner and UAW Vice President Richard Shoemaker "to underscore that negotiations about Delphi's future cannot wait," Casesa
Casesa says he thinks a deal will be made this summer.
"GM has a strong motivation to help Delphi avoid bankruptcy because it has some liability for Delphi's considerable legacy cost burden in the event of a filing before September 2007," Casesa says.
Delphi is mired in an accounting scandal that forced the company to restate its earnings for the past several years. Delphi posted a $4.75 billion loss in 2004.
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