Financial Times FT.com

Delphi on attack over deal collapse

By Bernard Simon in Toronto

Published: May 16 2008 23:42 | Last updated: May 16 2008 23:42

Delphi, the bankrupt automotive parts maker, has launched legal action against private-equity funds, led by Appaloosa Management of New Jersey, which withdrew last month from an earlier deal to contribute $2.6bn in equity to Delphi’s restructuring.

Delphi alleged in court documents on Friday that the funds “schemed to avoid their obligations rather than fulfil them”.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this