Delphi Corporation (OTC:DPHIQ) announced that it's emergence from bankruptcy would be postponed until 2008, according to an 8-K filing with the SEC. The bankrupt auto parts maker said it wants to push back the continued hearing on its disclosure statement two weeks so that it can incorporate potential plan changes.

"Delphi is continuing to work toward emergence as soon as possible and anticipates that the schedule will facilitate emergence during the first quarter of 2008," the company said in the SEC filing. The delay is reportedly due to longer-than-expected negotiations with former parent General Motors as well as several of its key investors including Appaloosa Management.

Delphi filed its reorganization plan on September 6th after much negotiation following its October 2005 bankruptcy. The plan calls for the funding consortium to purchase $800 million in convertible preferred shares and approximately $175 million in common stock of the reorganized company. The investors also are committed to purchasing any unsubscribed common shares after a $1.575 billion rights offering that will be made availale to shareholders.

Delphi's common stock shareholders will be able to get a pro-rata share of 1.48 million shares of new common stock; transferrable rights to buy 45.6 million of the 147.62 million total shares for $1.75 billion; five year warrants to purchase an additional 5% of common shares; and nontransferrable rights to buy about $572 million of shares at $45 per share.

In the end, many are looking forward to seeing Delphi emerge from bankruptcy as it could mean great opportunities to profit. The interesting provisions in this bankruptcy plan also make it very interesting for institutional investors who want a piece of the action. Combined, these factors make Delphi a stock worth watching!

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