Delphi Corp. plans no interruption of its global operations, a spokesman said, despite filing for protection from creditors Saturday under Chapter 11 of the federal bankruptcy code. The auto parts giant cited debts of $22.2 billion, compared to assets worth $17.1 billion, and said it expects to complete reorganization and emerge from bankruptcy by mid-2007. But the reorganization is expected to result in the closure of many of the company's 31 US assembly plants, with an unspecified loss of jobs. The bankruptcy filing indicated that Delphi also plans to ask the court's permission to eliminate medical and life insurance benefits for its retirees, and the United Auto Workers Union warned members who work for Delphi that the company wants to cut hourly wages from $27.50 to as low as $10, shrink their vacation time, and compel them to assume more of the cost of their healthcare benefits. Meanwhile, industry analysts predicted the move will, more than any other factor to date, increase pressure for cheaper, overseas-made components in new cars.
In a deal valued at $3.88 billion, the online gaming company Coral Eurobet will be acquired by Gala Group Holdings PLC, reports said. Their combined operations will make them one of Europe's largest bookmakers. Both companies are British.
Struggling telecommunications equipment manufacturer Marconi Group was refusing to comment on published reports that a takeover by Swedish rival LM Ericsson will be announced at any time. Ericsson, which also declined to comment, is understood to have bid about $2.7 billion. Marconi came close to collapsing four years ago and, last April, failed to win any of the $19 billion in infrastructure improvement contracts awarded by Britain's leading telecommunications operator, BT Group. Some of those contracts went to Ericsson. Marconi is based in Coventry, England.
Sanctuary Group, whose stable of pop music giants includes Destiny's Child, Elton John, and Iron Maiden, said it will cut 175 jobs, or one-quarter of its staff, and sell off some core businesses to save money. The company is based in London but has offices in New York, Los Angeles, Houston, and Berlin.