GM to help investment firm buy Delphi
According to a Wall Street Journal report, the automaker will provide $2.5 billion to the private equity firm that wants to buy bankrupt parts supplier Delphi.
NEW YORK (Reuters) -- General Motors Corp will give more than $2.5 billion of the $3.6 billion needed for Platinum Equity to gain control of bankrupt car parts supplier Delphi Corp, the Wall Street Journal said, citing a source.
Under terms of the transaction, private equity firm Platinum is expected to invest no more than $750 million and GM (GMGMQ) would provide the balance in financing, the report said Thursday, citing the source.
Terms of the GM loans could not be learned, the report added.
Platinum declined to comment. GM and Delphi were not immediately available for comment.
It was earlier reported that under the new organization plan for Delphi, Parnassus Holdings II LLC, a unit of Platinum Equity, would acquire and operate Delphi's U.S. and non-U.S. businesses with emergence capital and capital commitments totaling $3.6 billion.
At that time, a person familiar with the matter told Reuters that the $3.6 billion financing package would come from various sources including GM and Platinum, but declined to elaborate.
As part of the reorganization plan, GM has agreed to acquire five Delphi plants and its global steering business.
GM itself filed for bankruptcy protection earlier this week, the third-largest filing in U.S. history and largest ever in U.S. manufacturing.