Delphi exits bankruptcy after four years

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DETROIT (Reuters) -- U.S. auto parts maker Delphi ended four years in bankruptcy Tuesday, emerging from Chapter 11 as a private company and removing a major uncertainty for former parent General Motors Co.

Delphi, which filed for bankruptcy Oct. 8, 2005, fired thousands of workers, divested several businesses and agreed to sell its steering systems operations and four plants back to GM for the reorganization.

The parts maker completed the sale of most of its operations to a group that acquired its bankruptcy financing during the four-years of court protection.

Rodney O'Neal will remain chief executive of the company and the current leadership will remain in place, Delphi said in a statement.

The group acquiring the now much-smaller Delphi is led by Elliott Management Corp and Silver Point Capital LP. It has agreed to forgive nearly $3.5 billion of bankruptcy loans and invest $750 million in capital in the new company.

Other parts of the company will be sold back to GM and the rest will be liquidated under the plan approved by a U.S. Bankruptcy Court judge in July.