It has come out as a major news in the recent days that a considerable section of the Appaloosa Management is in strong favor of forming a separate committee on the Board of Delphi to look after its justifiable interest.  However, it has been stated in this regard GM still seems to have a big role to play in shaping the fate and functioning of the Delphi.

As far as the latest reports are rushing in, it has now reached that definite stage wherein Delphi is running into problems in having a steady relation with its stake holders, both aged old and the newcomers. The prime among them is the Appaloosa Management, the renowned hedge fund situated in the city of New Jersey. It is reported in this respect that the Appaloosa Management is in possession of 9.3% of the total of Delphi’s stocks. It is to be note in this respect, that the company had filed for Chapter 11 protection on October 8, 2005.

It has been acknowledged, that the hedge fund, Appaloosa Management is determined in harping the sharpest accusation on Delphi of putting their interest at risk and also that the parts maker has been playing a partial role thoroughly from the inception of the project and the alliance. According to them, Delphi is at present tying utmost to look after the interests of General Motors and the United Auto Workers union ahead of shareholders of the bankrupt US car parts maker. It has been understood by this correspondent while talking to a handful of the key persons of the hedge fund that there is also a general feeling, culmination of many past bitter experiences. That is, the General Motors and the United Auto Workers union are literally running the company even though there have been several and serious altercations between the two factions over this issue.  Therefore the hedge fund is stick to its demand of bankruptcy trustee for the sake of endorsing the formation of a separate equity holders' committee, that in due course would effectively monitor Delphi's restructuring. 

However there is a sharp dissension among the top most echelon of Delphi over this and has vehemently opposed this request. To the Company, the 12 directors on its board will be able to do the job just as well. In addition, they have added that the parent company is completely in receivership and as such the common shares are completely worthless.