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Automotive News & Views Delphi Restructuring A Key To The Industry?
470 messages, Last post on Jan 10, 2008 at 4:43 AM
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Michigan officials say auto supplier owes millions in unpaid business and use levies, dating to 1999. David Shepardson / Detroit News Washington Bureau WASHINGTON -- The state of Michigan is conducting two new tax audits at Delphi Corp. as it presses a bankruptcy court to force the supplier to pay $10.5 million in unpaid business taxes. Troy-based Delphi in a court filing this week disclosed that the state is auditing whether the supplier properly paid use taxes from 1999 through 2005 for its Delphi Automotive Systems unit. A separate audit of the company's Delphi Technologies unit will begin shortly and will be completed before a court hearing on Feb. 10 on the matter in U.S. Bankruptcy Court in New York. The audits center on whether Delphi properly paid use taxes, which are similar to sales taxes, on computer software and other information technology and utility services. Delphi said it is working with the state's auditors. In a Jan. 2 court filing the company acknowledged it may owe a limited amount of unpaid use taxes. In Michigan, a use tax is paid for storing or using personal property on items that weren't subjected to Michigan's sales tax. The state's use tax is assessed at the same rate as Michigan's 6 percent sales tax. Under Michigan law, certain purchases are exempt from use taxes, which Delphi claims exists in this case. The audits are in addition to the State Treasury Department's claim in U.S. Bankruptcy Court that the company failed to pay $10.5 million in single business taxes between 2002 and 2004 by improperly using foreign tax credits for research to offset its state tax liability. Delphi in a court filing said it properly paid its single business taxes. A spokesman for the Michigan Department of Treasury, Terry Stanton, declined to comment on the audits or the SBT case. Two executives to get $24.6M Separately, Delphi has agreed to pay its top two executives at least $24.6 million in cash and stock when the company emerges from bankruptcy early this year, part of an executive compensation program that's been widely criticized by the company's unions. Delphi CEO Rodney O'Neal will receive a $5.3 million cash payment and an initial stock and option grant of $10 million, with half the amount in stock when the company exits bankruptcy, which is expected by the end of March. O'Neal will be paid a base salary of $1.5 million annually, and beginning in 2009 will get annual stock and option packages worth at least $6.7 million. He is eligible for annual bonuses of at least $1.9 million. Outgoing executive chairman Robert S. "Steve" Miller will receive an $8.3 million cash payment upon the company's emergence from bankruptcy. The company has also decided to boost the amount of cash payments made to the top 560 executives to $87 million over the $78 million announced last month. The United Auto Workers and Delphi's other unions have filed objections to the salaried bonus program in U.S. Bankruptcy Court in New York. http://www.detnews.com/apps/pbcs.dll/article?AID=/20080105/AUTO01/801050359/1148- /rss25 -Rocky |
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Replying to: rockylee (Jan 05, 2008 4:41 pm) What do you guys think about the article above ????  -Rocky |
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Replying to: rockylee (Jan 05, 2008 4:41 pm) The solution is to treat Delphi as they would a new Japanese company wanting to run its plants in Michigan. Tax breaks. Tax breaks. Tax breaks. Look at Indiana and the new Honda plant and all the games they played to try to make it palatable to their Indianapolis urban folks but avoid including rural experienced, willing workers in the Anderson area. Executive pay has been protected by the politicians. It should be treated just like the employees. Kick the pay agreements out the door. Base pay and that's it. The company's in trouble. Use the same excuse they use for regular employees. Just because the executives have friends in high, elected places...
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Replying to: imidazol97 (Jan 06, 2008 9:01 am)   -Rocky P.S. Don't you guys have a Delphi, plant there in Ohio ??? Or did it close ???
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Replying to: rockylee (Jan 06, 2008 6:55 pm) An example of poor analysis by people who try to make thestory fit the desired outcome is here in this article about Dayton, Ohio, as an example of Midwest failure to be up on the world. A major employer in the area has been Wright Patterson Air Force base and assorted accoutrements to it. And then there are contractors who supply and work the base such as Martin Marietta. To read this guy who rode into town on a white horse, they just blindly held onto the last manufacturing job at GM/Delco and then shut the doors. Note the article link is to page #2 Midwest Failure
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Replying to: imidazol97 (Jan 08, 2008 8:27 pm) OMG, pal that was one hell of a great article that hit on all points. I actually got emotionally connected with it and all I could think about reading it is John Edwards, speech this evening. All I can do is pray..... -Rocky |
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http://www.autoblog.com/2008/01/08/delphi-concept-controls-your-car-through-ipho- ne/ What ya guys think about that ???? -Rocky |
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Replying to: rockylee (Jan 05, 2008 4:41 pm)
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Replying to: lemko (Jan 09, 2008 6:04 am) All Steve Miller, has done is take them through bankruptcy and as far as I know and has not given the company a sense of direction. Rumor, has it he's going to collect his money and bail soon. It's really a shame Delphi, isn't much of an american corporation. They have so much damn techology to offer our country and I just wished it was made here. Maybe someday I will get my wish.... -Rocky |
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Auto supplier trims financing to $4.5 billion in bid to end bankruptcy. WASHINGTON -- Delphi Corp. is holding meetings with lenders in New York and London this week in an effort to borrow up to $4.5 billion to exit bankruptcy, again reducing the refinancing it's seeking in this turbulent credit market. Raising money is the last major step the company must take to exit bankruptcy by March. The Troy-based auto supplier said Wednesday it has reduced the amount it wants to raise in exit financing by $700 million, to $4.5 billion. It hopes to have the money in place before a Jan. 17 hearing to confirm its reorganization plan. It already had reduced its offering once before, from $7.2 billion to $5.2 billion earlier last year. Delphi and its bankers -- J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. -- met with potential lenders in New York Wednesday and were to meet in London today.Delphi said it will use the loans to pay off debts. The company said it was able to reduce the amount it was seeking in exit financing because of improved operating performance and lower capital expenses in 2007. Delphi is offering a $3.7 billion loan at a discount, reportedly 96 cents on the dollar. Delphi also is offering a second-tier loan of $825 billion. Separately, Delphi is seeking an asset-back revolving line of credit line worth $1.6 billion that it can use if necessary. Delphi execs give depositions The bankruptcy court is scheduled to decide today whether to allow Delphi's creditors and shareholders on its statutory committees to participate in exit financing, an unusual request because some, including the U.S. Trustee, said it raises conflict of interest issues. Delphi noted "the chief remaining step" it must take is to get financing "in what is a very turbulent financing marketplace." Delphi argued that it should allow its creditors and shareholders on its committees to participate since nearly all of the information about the company's future plans is in the public domain. The U.S. Trustee opposed the request Wednesday. "The exit lenders will try to exact as many concession as possible from (Delphi) in light of the tight credit market, but the statutory committees should concentrate on obtaining the most favorable terms for Delphi," wrote Alicia Leonard, an attorney for the U.S. trustee. Delphi's reorganization hearing could last several days as U.S. Bankruptcy Judge Robert Drain hears objections. Before the hearing, objectors will get to question company executives and others. Delphi's executive chairman Robert S. "Steve" Miller will submit to a deposition Monday in New York. The company's chief restructuring officer, John Sheehan, will give a deposition Tuesday. One issue the company's unions are likely to raise is Delphi's plan to pay its top 560 executives $240 million in bonuses and other compensation when the company emerges from bankruptcy. Delphi also plans to pay Miller an $8.3 million bonus and the company's CEO Rodney O'Neal $5.3 million, along with an initial $10 million grant of stock and options. Delphi has already spent more than $320 million on legal, consulting and accounting fees since filing for bankruptcy protection in October 2005. http://www.detnews.com/apps/pbcs.dll/article?AID=/20080110/AUTO01/801100351/1148- -Rocky |
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