Delphi’s bankruptcy, at over $200 million in outside fees, is on its way to being one of the 10 most expensive bankruptcies in U.S. history. The fledgling Detroit-area automotive supplier spends about $12.5 million per month on teams of lawyers, accountants, and turnaround experts, much to the chagrin of the UAW. Union Delphi employees have even agreed to temporary pay cuts, but the bills keep adding up.
The Detroit News reports that, since Delphi declared bankruptcy in late 2005, the supplier has spent more than $200 million trying to turn itself around and that the bill could reach $300 million before the end of the year, when Delphi expects to emerge from bankruptcy. Delphi has hired nearly 40 outside firms to help assess and repair its damaged state.
But Delphi isn’t the only automotive firm spending incredible amounts of money on emerging from bankruptcy; Dana Corp. is expected to have spent $180 million by the end of ‘07 in its efforts to emerge from bankruptcy.
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07/11, 10:55 AM
posted by:
frankhoffy
Would this be considered super duper bankruptcy?
07/11, 11:08 AM
posted by:
renzogtr
uber bankruptcy
07/11, 11:55 AM
posted by:
cookie4me
Why is the union pissed? If they didn’t spend that money to find a way to turn a profit, no one would have jobs.
07/11, 1:36 PM
posted by:
LP640
ha ha talk about bankruptcy
07/11, 1:59 PM
posted by:
Piablo
If the union wasn’t pissed, they wouldn’t be the union.
07/12, 2:20 PM
posted by:
400horseSS
u suck piablo
07/16, 8:55 AM
posted by:
Piablo
And you have the vocabulary of a 6 year old. Did the batteries run out on your Speak and Spell?