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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of New York

FOR IMMEDIATE RELEASE
Friday, November 8, 2013

Former Delphi Corporation To Pay $23.3 Million To Clean Up Polluted Sites In Michigan And Ohio

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States, the State of Michigan, and the State of Ohio have settled environmental claims and liabilities asserted against DPH HOLDINGS CORPORATION, formerly known as Delphi Corporation (“Delphi”), and its corporate affiliates (collectively, “DPH”), under the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act (also known as the Superfund law), and state environmental laws.

U.S. Attorney Preet Bharara stated: “As a result of today’s settlement, Delphi will pay for the clean-up of four sites contaminated with hazardous waste. This settlement demonstrates again that the United States will pursue all available remedies to prevent polluters from escaping their environmental liabilities through the bankruptcy process.”

Under the Settlement Agreement filed today in bankruptcy court in White Plains, DPH will pay approximately $23.1 million in cash for the clean-up of four properties in Michigan and Ohio contaminated with hazardous waste. The remaining approximately $158,000 will be paid to the United States to reimburse the United States Environmental Protection Agency (“EPA”) for prior environmental clean-up work performed at an additional property in Ohio.

In October 2005, Delphi, one of the largest auto parts manufacturers in the world, filed chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the Southern District of New York; Delphi expects to complete its bankruptcy process and dissolve by year-end. The four properties that are the subject of the settlement are among the last assets owned by DPH. Under the settlement, an environmental response trust will be established to take ownership of, and oversee clean-up at, the four properties. The $23.1 million payment by DPH will fund the administrative costs of the trust and the clean-up of the properties.

Three of the four properties are the sites of former auto parts manufacturing plants: the former Delphi Automotive Systems Dort Highway Flint East Plant 400 and Plant 500 in Flint, Michigan, and the former Delphi Saginaw Division Plant 2 in Saginaw, Michigan. Through the settlement, DPH will pay for the clean-up of both soil and groundwater contamination at these sites. The fourth site is an inactive asbestos landfill in Rootstown, Ohio, formerly operating under Delphi’s Packard Electric/Electronic Architecture Division. The funds provided by DPH in the settlement will pay for groundwater monitoring and ensure continued public safety and security at this property.

The Settlement Agreement will be filed with the Bankruptcy Court for a period of 15 days before its entry to provide public notice and to afford members of the public the opportunity to comment on the Settlement Agreement.

This is the second environmental settlement in this bankruptcy. In 2011, the United States recovered more than $857,000 in a settlement of other environmental liabilities in the case.

Mr. Bharara praised the efforts of EPA, the State of Michigan, the State of Ohio, and the Environment and Natural Resources Division of the U.S. Department of Justice in this case.

Assistant United States Attorney Cristy Irvin Phillips is in charge of the case, which has been handled by the Office’s Environmental Protection Unit and Tax and Bankruptcy Unit.

In re DPH Holdings - Settlement Agreement with Exhibit A

Press Release Number: 
13-341
Updated May 18, 2015