Leading US automotive parts maker Delphi Corporation emerged from a four-year bankruptcy protection as a private company following the sale of its assets to lenders and an affiliate of former parent General Motors Company (GM).
A group of lenders including Elliott Management Corporation and Silver Point Capital LP agreed to buy most of the Delphi's assets, forgiving approximately $3.4 billion in debt and investing $900 million in the new company.
GM will acquire Delphi's four US plants in Michigan, Indiana and New York, and its steering business, putting up $1.7 billion.
Rodney O'Neal, the continuing president and CEO of the reorganised 'Delphi Holdings LLP' said, ''We are a more agile, nimble and resilient company and are eager to begin the next part of our journey with our customers, employees and suppliers.''
Delphi, which was spun-off from GM in 1999, was filed for bankruptcy under chapter 11 in October 2005 in Southern District Court of New York. Earlier this year, GM had stated that it spent around $12.5 billion for Delphi's restructuring and problems at Delphi could hinder its own reorganization.
The auto-parts maker was in the verge of exiting from bankruptcy in April 2008 with a $6.1 billion financial aid, when one of the hedge funds backed out of the deal following the global financial crisis.