Reuters -Highland Capital, a hedge fund that is the second-largest shareholder in Delphi Corp., plans to send a letter on Thursday to Delphi’s board outlining a $4.7 billion capitalization plan forthe company, the Wall Street Journal reported on its Web site.
That would counter a proposal from a group of investors led by Appaloosa Management and Cerberus Capital Management.
Delphi, which is under Chapter 11 bankruptcy-court protection, laid out a road map for reorganization on Monday that includes an investment of up to $3.4 billion from a private equity group, potential creditor recoveries and an executive succession plan.
Appaloosa Management LP and Cerberus Capital Management LP are leading the group that will invest up in the auto parts maker, giving the investors a large stake when Delphi emerges from bankruptcy.
