Delphi shares fall on report of bankruptcy

09/26/05 - newratings.com

NEW YORK, September 26 (newratings.com) – According to the Washington Post, Delphi Corp's (DPH) share price fell more than 17% on Monday, following a comment by Deutsche Bank’s analyst, Rod Lache, that the company is likely to file for Chapter 11 bankruptcy protection.

According to MarketWatch, Lache said that he is no longer convinced that Delhi would be able to workout a deal with General Motors (GM) and the United Auto Workers union. Lache added that Delphi would seek Chapter 11 protection, since tougher bankruptcy rules are will become effective from October 17. The Washington Post quoted Lache as saying that Delphi's potential Chapter 11 filing would benefit both General Motors and the UAW. According to MarketWatch, Lache said, however, that Delphi's non-GM business is growing at double-digits.