DETROIT -- Delphi Corp. asked a U.S. court trustee on Wednesday to delay forming an equity committee in its bankruptcy protection case, calling such a move premature.
Delphi said in a filing with the U.S. Securities and Exchange Commission that it is unlikely stockholders will get any value for their investment, characterizing its state as "hopelessly insolvent."
Delphi stock was trading at 34 cents a share on Wednesday morning.
Appaloosa Management LP, of Chatham, N.J., which owns about 9.3 percent of Delphi stock, on Nov. 7 requested that an equity committee be formed to represent shareholders in the case.
But Delphi asked to delay consideration of the committee until after it files financial statements and schedules of assets and liabilities in January. Delphi also said its board of directors can continue to represent the interests of shareholders as the company reorganizes.
Delphi filed for Chapter 11 bankruptcy protection on Oct. 8 in New York. In its petition, it listed more than 561.8 million shares of common stock owned by 331,202 stockholders.
When companies reorganize under Chapter 11, shareholders rarely get to retain shares in the new company when it emerges from court protection.
Separately, Delphi named Brian Thelen vice president of audit, effective Feb. 1.
Thelen, 42, reports to Robert Dellinger, Delphi's CFO. Thelen also will be a member of the supplier's strategy board.
The slot had been vacant since John Arle was named treasurer and vice president in June. Derek Kolano, director of corporate audit services, had been filling in and keeps his current title.
Thelen was most recently vice president of internal audit services for Waste Management Inc., of Houston.
Delphi, of Troy, Mich., supplies steering, chassis, electrical, energy, engine and thermal management, interiors, electric components and in-vehicle entertainment systems. The company ranks No. 2 on the Automotive News list of the top 100 global suppliers with estimated worldwide original-equipment automotive parts sales of $24.1 billion in 2004.
You may e-mail Greg Migliore at [email protected]