DETROIT — Delphi Corp.'s retired salaried employees have formed an organization to fight the bankrupt supplier's 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 a Tuesday, Feb. 17, 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.
Delphi, of suburban Detroit, filed for Chapter 11 bankruptcy in October 2005 and was ready to exit in April. But equity partners backed out, leaving Delphi seeking a new plan.