Delphi emerges from 4-year bankruptcy

07 Oct 2009

1

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 Rodney O'Neal, president and CEO, Delphi Holdings LLPagreed 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.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers