Summary Notice of Proposed Second Modification to the Terms of the Settlement With Certain Defendants

Summary Notice of Proposed Second Modification to the Terms of the Settlement
With Certain Defendants

DETROIT, Oct. 8 /PRNewswire/ -- The following statement is being issued by
Bernstein Litowitz Berger & Grossmann, LLP; Grant & Eisenhofer P.A.; Nix,
Patterson & Roach, L.L.P. and Barroway Topaz Kessler Meltzer & Check, LLP
regarding the Delphi Corporation Securities DERIVATIVE & "ERISA" Litigation.

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

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IN RE: DELPHI CORPORATION : MDL No. 1725
SECURITIES, DERIVATIVE & "ERISA" : Master Case No. 05-md-1725
LITIGATION : Hon. Gerald E. Rosen
:
: This Document Relates to:
: In Re: Delphi Corp. Securities Litig.
: No. 06-10026, and Case Nos.
: 06-10025, 06-10027, 06-10028,
: 06-10029, 06-10030, 06-10031, and
: 06-10032
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SUMMARY NOTICE OF PROPOSED SECOND MODIFICATION TO THE
TERMS OF THE SETTLEMENT WITH CERTAIN DEFENDANTS

YOU ARE HEREBY NOTIFIED that a proposed second modification ("Second
Modification") to the terms of the settlement with certain defendants in the
above-referenced Delphi Securities Action has been presented to, and
tentatively approved by, the Court. This Second Modification amends the
settlement terms set forth in the Stipulation and Agreement of Settlement With
Certain Defendants (the "Stipulation") dated August 31, 2007, as amended on
January 11, 2008 (the "First Modification"), which was approved by the Court
on January 23, 2008 following a fairness hearing and notice to the Class.
Unless stated otherwise, all terms capitalized herein are as defined in the
Stipulation, as modified by the First Modification and the Second
Modification.

The proposed Second Modification accelerates the timing and assures the
payment of the Class's recovery but decreases the consideration received by
the Class. A summary of the proposed modifications follows:

1. The Settlement will become effective independent of the occurrence of
the
Bankruptcy Effective Date and/or the substantial consummation of any
Delphi plan of reorganization, and thus, the $90.1 million in cash
(plus
interest), less Court-approved attorneys' fees and expenses, currently
being held in escrow will be distributed pursuant to the terms of the
Stipulation, as modified by the First Modification and the Second
Modification, regardless of when or whether Delphi emerges from
bankruptcy.
2. The Section 510(b) Claim granted to the Class pursuant to the
Stipulation
and the First Modification will remain allowed in the same aggregate
face
amount as set forth in the First Modification, but will not be
guaranteed
any particular treatment or classification in any plan of
reorganization
that ultimately may be consummated. Under the terms of Delphi's new
plan
of reorganization confirmed by the Bankruptcy Court in July 2009, the
Section 510(b) Claim has no value.

3. The $15 million cash payment which Delphi originally agreed to cause to
be paid by a third party in the First Modification will not be paid.

The parties disagree on the amount of damages, if any, that could have been
recovered if the Class prevailed on each claim at trial. As the Section
510(b) Claim has no value under the plan of reorganization confirmed in July
2009, the aggregate amount of the settlement consideration is no less than
$90.1 million. Based upon the claims submitted by Class Members to date,
Co-Lead Counsel estimate that the average payment to Class Members would be no
less than $0.13 per share of Delphi common stock, after taking into
consideration the relative average payment that would be paid to Authorized
Claimants who purchased Delphi Notes during the Class Period.

Co-Lead Counsel were previously awarded attorneys' fees of 18% of the Gross
Settlement Fund and reimbursement of costs and expenses in the amount of $1.3
million. The average reduction to the recovery per share of Delphi common
stock attributable to the Court-awarded attorneys' fees and expenses is
approximately $0.02.

Lead Plaintiffs and Co-Lead Counsel have determined that, based upon (i) the
dramatic change in Delphi's circumstances since they entered into the First
Modification, including the catastrophic downturn in the economy, and in the
auto industry in particular, and (ii) the fact that the Bankruptcy Effective
Date will not occur with respect to the plan of reorganization that was the
subject of the Confirmation Order entered by the Bankruptcy Court in January
2008, it is in the best interest of the Class to allow the Settlement to
become effective without regard to the occurrence of the Bankruptcy Effective
Date and/or consummation of Delphi's plan of reorganization in the bankruptcy
proceeding.

For a more detailed description of the proposed Second Modification to the
terms of the Settlement, please visit www.delphiclasssettlement.com to
download all relevant documents, including the Website Notice and the Second
Modification, or call (800) 918-0998.

A hearing will be held before the Honorable Gerald E. Rosen in the United
States District Court for the Eastern District of Michigan, Southern Division,
Theodore Levin U.S. Courthouse, 231 W. Lafayette Blvd., Detroit, Michigan
48226, in Courtroom 733, at 1:00 p.m., on November 16, 2009 to determine
whether: (1) the Second Modification should be approved by the Court as fair,
reasonable and adequate; (2) Judgment should be entered pursuant to the Second
Modification; and (3) such other matters as the Court deems appropriate to
rule upon.

You may object to the proposed Second Modification or request exclusion from
the Settlement, as modified by the First Modification and the Second
Modification. To properly object or request exclusion, you must follow the
instructions for doing so in the Website Notice, which is available at the
above-referenced website. Any objection or request for exclusion must be
properly submitted by November 2, 2009.

SPECIAL NOTICE TO SECURITIES BROKERS AND OTHER NOMINEES
If you purchased or acquired Delphi Securities during the Class Period as
nominee for a beneficial owner, you are hereby directed to follow the
instructions for securities brokers and other nominees contained in the
Website Notice available at www.delphiclasssettlement.com .

By Order of The Court

SOURCE Bernstein Litowitz Berger & Grossmann LLP; Grant & Eisenhofer P.A.;
Nix, Patterson & Roach, L.L.P.; Barroway Topaz Kessler Meltzer & Check, LLP

John P. Coffey, Esq. of Bernstein Litowitz Berger & Grossmann, LLP,
+1-212-554-1400; or Stuart Grant, Esq. of Grant & Eisenhofer P.A.,
+1-302-622-7000; or Bradley E. Beckworth, Esq. of Nix, Patterson & Roach,
L.L.P., +1-903-645-7333; or Michael K. Yarnoff, Esq. of Barroway Topaz Kessler
Meltzer & Check, LLP, +1-610-667-7706