Troubled car parts maker Delphi and thirty eight of its US subsidiaries filed voluntary petitions for business reorganisation under Chapter 11 of the US Bankruptcy Code on Saturday in New York City.
Delphi’s non-US subsidiaries were not included in the filing and will continue their business operations without supervision from the US courts - they will not be subject to the Chapter 11 requirements of the US Bankruptcy Code.
"We took this action because we are determined to achieve competitiveness for Delphi’s core US operations, and the key to accomplishing that goal is reducing costs as soon as possible," said Robert S. Miller, Delphi's chairman and CEO.
"We simply cannot afford to be encumbered by burdensome restrictions under current labour agreements that impair our ability to compete. We must also realign our global product portfolio and manufacturing footprint to preserve our core businesses. This will require a substantial segment of our US manufacturing operations to be divested, consolidated or wound-down through the Chapter 11 process," he added.
The company expects to complete its US-based restructuring and emerge from Chapter 11 business reorganisation in early to mid-2007.
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