Delphi Finally Exits Bankruptcy
October 6, 2009 by Mark Ellis
Filed under Business
Delphi, the automotive parts maker that was spun off from General Motors, has finally emerged from its stay in bankruptcy after a protracted four-year stint with bankruptcy protection as the company got its financials back in order. According to the company, the final push to get Delphi out of bankruptcy involved the sale of assets to lenders and to General Motors, its parent company.
The new company, post-bankruptcy, will be called Delphi Holdings, and its newfound stability comes as a great relief to General Motors. GM has spent plenty of money to make sure that Delphi’s reorganization went through smoothly, placing as much as $1.25 billion into Delphi.
General Motors will take over Delphi’s steering business and four plants in Michigan, Indiana, and New York, while Delphi’s lenders, including the Elliott Management Corporation and Silver Point Capital, will buy most of the rest of its assets. Its lenders also agreed to forgive about $3.4 billion in debt and to invest around $900 million into the company.
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