Delphi:Judge orders sale

[rickaren]

Judge orders sale process to maximize Delphi returns

Posted Thursday, Jun 11, 2009, 1:08 pm in Employee News

A bankruptcy judge said Wednesday that a formal sale process needs to be put in place in order to ensure that the potential sale of Delphi Corp.’s assets results in the greatest possible return for the auto supplier’s stakeholders, the Detroit Free Press reported.

U.S. Judge Robert Drain said potential bids from the Troy, Mich.-based Delphi’s lenders and other parties need to be considered before the deal between the company and an affiliate of the private-equity firm Platinum Equity can be allowed to go through, the Free Press said.

Platinum Chairman and CEO Tom Gores responded in an e-email: “Platinum Equity is uniquely equipped to help Delphi in ways no other investor can. We are ready to help and will see to it that we are a positive contributor to the industry’s transformation. We have spent more than three years learning Delphi’s business and assembling the plans needed to help Delphi successfully emerge from bankruptcy on a road to long-term health and profitability.”

Under the deal announced earlier this month, Delphi plans to sell some of its assets to Parnassus Holdings II LLC, an affiliate of Platinum Equity, which would operate Delphi’s U.S. and global businesses, the story said. (Detroit Free Press)

[rickaren]

Delphi gets OK to access $250 million from GM

Posted Wednesday, Jun 17, 2009, 1:47 pm in Employee News

A federal judge gave bankrupt Delphi Corp final approval on Tuesday to tap former parent General Motors Corp. for access to $250 million in funding that is expected to support the Troy, Mich.-based auto parts supplier until it can emerge from bankruptcy, Reuters reported.

U.S. Bankruptcy Judge Robert Drain also approved a motion that would classify reclamation claims as unsecured, the news service said. Drain also allowed Delphi to end its use of the services of consulting firm Deloitte & Touche LLP, the story said.

Delphi, which was spun off from General Motors Corp. in 1999 and filed for bankruptcy in 2005, said earlier in June it had reached a deal to sell most of its global operations to private equity firm Platinum Equity, potentially allowing the car parts supplier to emerge from its nearly four-year bankruptcy, the story said. (Reuters)