More Delphi Corp. suppliers want their money and are creating a parade to bankruptcy court in New York.
Last week, at least four Delphi vendors asked U.S. Bankruptcy Judge Robert Drain to decide whether they had to complete work for Delphi for which they might not be paid or paid in full.
In one case, machine builder Pillarhouse USA Inc. says Delphi has demanded that the company install $77,535 worth of equipment at a factory in Mexico or face penalties if the refusal hurts production.
The catch for Pillarhouse is that Delphi is willing to pay $3,950 for the installation. But the equipment debt will be considered unsecured. That means Pillarhouse will have to wait in line with hundreds of other unsecured creditors for Delphi's reorganization before payment, if any, is made, according to court documents.
Last week, Pillarhouse filed a motion in the bankruptcy court where Delphi sought Chapter 11 protection for its U.S. operation last month.
An attorney representing Pillarhouse declined to comment.