Reply #72: GM withdraws bid to join Delphi creditor committee (GM viewed as adversary

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-09T165919Z_01_N09516384_RTRIDST_0_AUTOS-DELPHI-COMMITTEE.XML

CHICAGO, March 9 (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) has withdrawn a request to join the creditors committee for the bankruptcy of auto parts maker Delphi Corp. (DPHIQ.PK: Quote, Profile, Research), citing committee objections, GM said in court papers.

GM, in talks with Delphi and Delphi's unions over the parts maker's plans to slash wage and benefit costs, had argued that its appointment to the committee would be constructive and would facilitate negotiations toward an agreement.

"Unfortunately, it is clear from the responses ... that General Motors is viewed as an adversary," GM lawyers said in court papers filed on Wednesday. GM said it disagreed with this view but added that membership on the committee might be counterproductive, given the opposition.

In an objection filed with the court, the committee had said GM's presence would "cripple if not destroy" its ability to maximize returns for unsecured creditors of Troy, Michigan-based Delphi.

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