Friday is the day for Delphi Corp.
The bankrupt auto parts maker moves closer to ending its nearly four-year stay in Chapter 11 as Friday marks the deadline for new suitors to outbid private equity firm Platinum Equity for the company. Thus far, there are a number of bidders expected to submit offers for the company topping the Obama administration-brokered deal that Delphi already has with Platinum. (The Deal Pipeline subscribers can read the full story
here.)
Platinum Equity and other investors agreed to invest $3.6 billion to save Delphi from liquidation. Former Delphi parent General Motors Corp., itself bankrupt, would also supply $250 million in financing and acquire certain assets.
According to
Reuters the likely participants in the auction are rivals Federal-Mogul Corp (NASDAQ:FDML); distressed investor Wilbur Ross; and hedge fund Elliott Management, which recently bought up a large portion of Delphi's debtor-in-possession financing on the secondary market.
Among those that have taken a look at the company's books but are now unlikely to make an offer include TRW Automotive Holdings (NYSE:TRW) and hedge fund Appaloosa Management, who threw Delphi's plan to emerge from Chapter 11 into chaos in April when it pulled out a deal to provide $2.55 billion in exit financing.
In June, Judge Robert Drain ordered Delphi to take competing bids to Platinum's offer after creditors complained that the deal was struck behind closed doors and short-changed them. -
George White
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