Delphi Corp.s retired salaried employees have formed an organization to fight the bankrupt suppliers decision to eliminate their health care and life insurance benefits.
Delphi -- which says its value if sold may be less than the worth of its post-bankruptcy obligations -- filed the motion to cut the retiree benefits Feb. 4 in U.S. Bankruptcy Court in New York.
That sent retirees scrambling to organize and object to the motion before todays court deadline for those objections, said retiree spokesman Milton Beach. They formed the Delphi Salaried Retiree Association last week and retained the law firm Farella, Braun and Martel LLP.
The law firm, which negotiated retiree benefits during the bankruptcy of Delta Air Lines, plans to file the objection today on behalf of the 1,000 members of the Delphi group. The Bankruptcy Court will hear objections Feb. 24.
Delphi filed for Chapter 11 bankruptcy in October 2005 and was ready to exit in April. But equity partners backed out, leaving the supplier seeking a new plan.
Delphi, of suburban Detroit, ranks No. 5 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers totaling $22.28 billion in 2007.