Delphi: June net loss pinned on plant closing

The closing of a plant in Spain contributed heavily to Delphi Corp.’s net loss in June of $330 million.

Worker severance and other costs of closing Delphi’s Puerto Real plant in Cadiz, Spain, resulted in a $207 million expense in June, according to Delphi’s monthly operating report. The year-to-date cost of exiting Cadiz was about $268 million.

The monthly operating report is required by the U.S. Bankruptcy Court. The numbers are unaudited.

In the first half, Delphi posted a net loss of $974 million. That compared with a net loss of about $2.6 billion in the first half of 2006, including about $1.8 billion for the buyout and early retirement of Delphi’s union work force.

In the report, Delphi said it will seek approval from the bankruptcy court on Thursday, Aug. 2, for a new recapitalization plan. The agreement calls for an equity group led by Appaloosa Management LP and Harbinger Capital Partners to invest as much as $2.55 billion in preferred and common equity to reorganize the company.

Delphi is shedding all but eight of its 29 U.S. plants as it seeks to emerge from Chapter 11 protection as a mostly overseas, electronics supplier.

Delphi, of suburban Detroit, ranks No. 2 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $24.40 billion in 2006.