Web www.software-risk.co.uk

Bankrupt automotive component giant Delphi is taking court action against suppliers that allegedly threaten to halt deliveries until they are paid.

Four court orders have already been obtained against companies. They are required to explain before a bankruptcy judge their "extortive" behavior. Two of the companies are German.

Under US bankruptcy law, suppliers can not alter contracts to take advantage of the bankrupt company's distressed financial state. Delphi has however will be able to make payments of $90m following court approval.

The Delphi legal team hasten to say that less than 1% of suppliers are making the alleged threats.

Related Articles
Enron Stellar Witnesses
Delphi Supplier Fight
General Motors and CMMI
Delphi Chapter 11 Suspension Sought
Refco Losses Hid For Decade
SEC Investigates Pensions
Refco Bidder Revelation
GM and Delphi SEC Probe

Similar Areas

Risk Management Items

Sarbanes-Oxley Items

Finance Items

Management Items

Law Items

Selected Books

Keywords

Delphi

General Motors

bankruptcy

bankruptcy law