Two hedge funds are suing Delphi Automotive PLC accusing the auto-parts supplier of failing to pay up to $300 million promised to creditors as part of its bankruptcy plan, Dow Jones Daily Bankruptcy Review reported today. In a lawsuit filed on Monday in bankruptcy court, Solus Alternative Asset Management and Angelo, Gordon & Co. say that Delphi is about to renege on commitments it made under its plan to exit bankruptcy in 2009. The funds asked the court to reopen Delphi's bankruptcy case, which has been largely dormant since the end of last year. The breach-of-contract suit centers on the terms of Delphi's chapter 11 plan, which called for unsecured creditors to begin receiving up to $300 million once $7.2 billion had been doled out to owners of the reorganized Delphi. Solus and Angelo are among several distressed-debt investors that bought up debt in the "old" Delphi. The funds say that in the suit that Delphi is close to reaching that $7.2 billion threshold but that Delphi denies that is the case.
