How much does buyer's remorse cost? Possibly millions, possibly billions, depending on where Delphi Corp. goes from here. As we reported Thursday morning, Delphi is forming a special litigation committee and an independent legal counsel that will pursue some type of legal action against Appaloosa Management LP and the rest of the group that pulled the rug out from under the auto parts maker on April 4.
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The litigation is likely to be filed with the U.S. Bankruptcy Court for the Southern District of New York in Manhattan. Just what, exactly, does Delphi plan to do? And how much will it cost David Tepper and the rest of the firms that nixed their $2.55 billion investment deal?
Delphi hinted Wednesday that it may try to ask the court to essentially cram the investment deal down on investors through a legal proceeding. That, apparently, would cost the $2.55 billion that the group seemingly had no interest in giving up, in the end. Or will Delphi run to General Motor Corp. for more financing help, create a new deal, and save its fight with Tepper and the rest of them for later?
We've already seen one group with cold feet -- the exit lenders for Solutia Inc. -- end up back at the table because of the threat of legal action. Will pressure from Delphi cause us to see another? - Ben Fidler
See story about Delphi potentially taking legal action from TheDeal.com
See story about Appaloosa pulling out of the investment from TheDeal.com
