Bankrupt Delphi announces deal with debtors
Auto parts supplier awaits Wednesday ruling from bankruptcy judge.
NEW YORK (CNNMoney.com) -- Delphi Corp., a bankrupt auto parts supplier spun off by General Motors in 1999, has announced that a group of lenders has successfully bid to take control of the company.
The lenders' group, which includes Elliott Management and Silver Point Capital, own $3.4 billion in Delphi debt, according to a report in The Wall Street Journal.
Delphi said General Motors supports the deal, which requires the approval of U.S. Bankruptcy Court Judge Robert Drain. A court hearing is scheduled Wednesday at the bankruptcy court in New York.
Delphi said that if the court does not approve its bidding process, it will sell its assets through a 363 sale.
As part of this process, Delphi said in June that it can no longer fund its pension benefit plan for retirees and current workers after it emerges from Chapter 11. But the company also said it has reached an agreement with the U.S. Pension Benefit Guaranty Corp. to take over the pension plan.
Delphi, based in Troy, Mich., is a supplier of mobile electronics and transportation systems, including power train, safety, steering, thermal and security systems.
The company reported $18.1 billion worth of revenue in 2008. At the end of that year, Delphi had 133,000 employees and 138 factories in 34 countries.