Delphi Corp. has sued Appaloosa Management LP and eight other investors, seeking to force them to buy $2.55 billion in securities to help the auto-parts maker out of bankruptcy.
Delphi said it trusted Appaloosa, founder David Tepper, and other plan investors to help fund its exit from bankruptcy, according to the complaint filed yesterday in U.S. Bankruptcy Court in New York. The investor group backed out of an agreement April 4, the day Delphi planned to emerge from Chapter 11, saying the firm failed to meet the deal s conditions.
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