Web www.software-risk.co.uk

Delphi shareholders are to ask the bankruptcy judge to suspend certain automatic Chapter 11 protections. The move is in support of a lawsuit over alleged financial irregularities.

Targets of the lawsuit include the company, former directors, auditors and bankers.

The allegations center on claims that the company boosted profits through fake sale and repurchase deals and wrongly classified income and costs.

Loans known as "Disguised" loans are alleged to have involved Bank One (now owned by JP Morgan Chase), Setech and BBK.

The action has been brought by two U.S. pension funds and two European funds.

The documents requested include everything that has been provided to the Securities and Exchange Commission (SEC).

Both the SEC and the FBI have launched investigations into the bankrupt automotive components manufacturer.

The Chapter 11 is not likely to be lifted until 2007. Until then Delphi has a great deal of protection against creditors.

Additionally, Delphi has already told the markets to not rely on their financial statements since 2001.

A decision has yet to be made over the location of hearings. The two options are Detroit or New York.

Related Articles
Enron Stellar Witnesses
Delphi Supplier Fight
Refco Losses Hid For Decade
SEC Investigates Pensions
Refco Bidder Revelation
Delphi Suing Extortionate Suppliers
GM and Delphi SEC Probe
Hermes Gets Calpers Man

Similar Areas

Sarbanes-Oxley Items

Finance Items

Accounting Items

Banking Items

Law Items

Selected Books

Keywords

Delphi

Chapter 11

bankruptcy

auditors and lawsuits

SEC investigations

Detroit