( www.thestreet.com ) – Delphi’s (DPH:NYSE – commentary – research – Cramer’s Take) bankruptcy filing might make it Black Monday for the auto parts industry, but for hedge funds with bigbets riding on the company’s stock and bonds, the picture could be even bleaker.
The No. 1 parts supplier to General Motors (GM:NYSE – commentary – research – Cramer’s Take) ended months of frenetic speculation on Saturday by seeking Chapter 11 bankruptcy protection. The stock, which could well end up worthless in a reorganization, was recently trading for 48 cents after falling from $2.20 to $1.12 on Friday.
