Delphi Corp., Troy, Mich., will contribute about $1.3 billion to its U.S. pension fund after emerging from Chapter 11 bankruptcy protection later this year, according to an SEC filing today. Delphi’s U.S. pension plan had $10.7 billion on Dec. 31, according to the firm’s 2006 annual report.
Recent discussions with the IRS and the PBGC “have culminated in a funding plan that would enable the company to satisfy its pension funding obligations upon emergence from Chapter 11 through a combination of cash contributions and a transfer of certain unfunded liabilities to a pension plan sponsored by General Motors,” the filing said. The IRS will waive funding requirements for Delphi’s pension plan for the year ended Sept. 30, 2006, provided that Delphi files a reorganization no later than July 31, emerges from bankruptcy protection no later than Nov. 15, moves $1.5 billion of pension liabilities to GM and contributes about $1.3 billion to its pension plan through June 15, 2008.
Delphi filed for Chapter 11 bankruptcy protection on Oct. 8, 2005.
