DETROIT -- Delphi Corp. and its creditors have delayed bankruptcy court action until July on the most controversial portions of Delphi's proposed executive compensation plan.
Delphi's proposed $500 million plan, filed in October, drew strong opposition from the UAW and other unions representing about 34,000 Delphi hourly workers. UAW President Ron Gettelfinger called the package "obscene" because Delphi had asked hourly workers to take pay cuts of 60 percent, plus job cuts and benefit concessions.
Institutional lenders also have lined up against the plan. Powerhouse creditors, led by JPMorgan Chase Bank N.A. and Wilmington Trust Co., say the package is too generous and lacks performance triggers.
They are among more than a dozen companies or unions that have filed formal objections to Delphi's so-called Key Employee Compensation Plan in U.S. Bankruptcy Court in New York. That's where Delphi, of Troy, Mich., sought Chapter 11 protection for its U.S. operations.
In a separate action, last week Judge Robert Drain approved a Delphi request for an additional six months, to Oct. 4, to file a reorganization plan and solicit approval from creditors.