Delphi Corp. continues to lose money — another $1.20 billion in the third quarter and $2.50 billion for the first nine months of 2007. And Delphi said Friday it is delaying reorganization hearings until Nov. 29 after lead investor Appaloosa Management LP said terms of its $2.55 billion financing agreement haven't been met.
But Delphi's managers still want to make sure they have incentives to get out of Chapter 11.
The supplier has asked the U.S. Bankruptcy Court in New York to approve at least $215.5 million in bonuses and incentives to be shared by 560 executives and managers when the supplier exits bankruptcy.
According to The Detroit News, the figure accounts for $78 million in one-time bonuses, $46 million in short-term incentives, $80 million in cash/stock long-term bonuses, and $11.5 million in one-time stock grants.
The stock would be shares in the new company. Delphi's existing stock most likely will become worthless once the company reorganizes.
It's still unclear how much Delphi's top executives, such as Chairman Steve Miller, stand to gain from all this. Stay tuned.