delphi goes under
Gone but not forgotten.
Joined: Jul 2001
Posts: 6,521
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Originally Posted by polarbear
Not caught- it was their option. More chilling, so was Delphi's BK filing. An interesting take:
http://www.detnews.com/2005/insiders...A01-341884.htm
60% proposed wage cut for factory floor workers? There's a war being waged on the middle class in this country- it's being waged on the fronts of wages, healthcare, and retirement benefits. I'm dumbfounded that more folks haven't figured this out. That's an economic, not a political comment- this has been going on for almost a decade.
The real question with Delphi is who the last domino will be.
http://www.detnews.com/2005/insiders...A01-341884.htm
60% proposed wage cut for factory floor workers? There's a war being waged on the middle class in this country- it's being waged on the fronts of wages, healthcare, and retirement benefits. I'm dumbfounded that more folks haven't figured this out. That's an economic, not a political comment- this has been going on for almost a decade.
The real question with Delphi is who the last domino will be.
We are the largest consumer on the planet, with 71% of our GDP from personal consumption compared to Europe's 58%, Japan's 55% and China's 42%. We have a negative savings rate compared to Europe's 14%, Japan's 8% and China's 35%. We have a growing national debt to service, a growing trade deficit, rising energy costs, interest rates rising and a weak growth of real wages .... not a pleasant scenario for a prosperous middle class. I am not saying the sky is falling, but it has some really dark clouds.
Dono
Post Fiend
Joined: Feb 2004
Posts: 10,728
Likes: 1
From: Damascus-Boring, Ore
Some interesting notes on the Dephi bankruptcy. Their filing (and strategy) is being handled by the same firm that shepherded K-Mart through- and they're good. How good?
The Friday before Columbus Day, Delphi did electronic fund transfers to a number of their suppliers. At a second after 5:00PM Friday, they then drained all their bank accounts- in front of a three day weekend with a Monday bank holiday. They filed their BK noon Saturday- sliding under the magic October 17th BK reform deadline (the one designed to keep all those deadbeat credit-card holders feet to the fire
).
Sooo... many suppliers that thought they'd been paid discovered a week later that the transfers had bounced like rubber *****, way too late to get a court injunction to stop the emptying of the bank accounts. Since these suppliers now are hit with unexpected large losses, we can expect more layoffs in the surrounding industries that supplied to Delphi. All this from an insider at one of these companies.
I don't know why I'm grappling with this, but I'm beginning to think some Corporations have a fuzzy way of looking at this whole "ethics" thing, ya know?
The Friday before Columbus Day, Delphi did electronic fund transfers to a number of their suppliers. At a second after 5:00PM Friday, they then drained all their bank accounts- in front of a three day weekend with a Monday bank holiday. They filed their BK noon Saturday- sliding under the magic October 17th BK reform deadline (the one designed to keep all those deadbeat credit-card holders feet to the fire
).Sooo... many suppliers that thought they'd been paid discovered a week later that the transfers had bounced like rubber *****, way too late to get a court injunction to stop the emptying of the bank accounts. Since these suppliers now are hit with unexpected large losses, we can expect more layoffs in the surrounding industries that supplied to Delphi. All this from an insider at one of these companies.
I don't know why I'm grappling with this, but I'm beginning to think some Corporations have a fuzzy way of looking at this whole "ethics" thing, ya know?
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