This NY Times article has some interesting details on the possible Chapter 11 filing of Delphi. Will it affect XM? Maybe not so much directly, but it will definitely affect General Motors, Delphi’s former parent, and caretaker of medical and pension benefits to Delphi retirees if bankruptcy occurs before mid-2007.
Remember, Chapter 11 simply means that there’s a reorg of the financials. Creditors get paid according to court orders rather than through the regularly agreed schedules. There are many companies that walk away from bankruptcy without problems, so don’t declare their demise just yet.
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