DELPHI: Creditors win in auction for company's assets

Delphi

July 27, 2009

Anonymous The Lockport Union-Sun %26 Journal Mon Jul 27, 2009, 11:59 PM EDT

THE ASSOCIATED PRESS

NEW YORK — Auto parts maker Delphi Corp. said Monday its creditors won out over a California private-equity firm in an auction for the company’s assets as it moves to emerge from bankruptcy protection.

Troy, Mich.-based Delphi said creditors led by JPMorgan Chase Bank had the successful bid. The lenders submitted a credit bid, which would involve them forgiving the combined $3.45 billion in debt owed them by Delphi.

The deal is backed by General Motors Co. Delphi was a GM parts subsidiary until it was spun off as an independent supplier in 1999. The interests of the two companies remained intertwined because of GM’s dependence on parts from Delphi and Delphi’s need for financing.

Delphi said that a deal announced in June with an affiliate of Beverly Hills, Calif.-based Platinum Equity is now considered the “alternate transaction” behind the deal with the creditors.

It said the deal with the creditors has a similar structure to the one struck in June with Platinum, under which Platinum would have acquired the right to operate most of Delphi’s businesses with the help of billions of dollars in aid from GM.

In exchange, GM would get certain parts of Delphi, including its Lockport plant and Saginaw, Mich.-based steering business, and much needed assurance of a steady supply of the parts it needs to produce its cars and trucks. Other “noncore” plants and assets would be sold off over time.

The creditors’ bid has to be approved by bankruptcy court, and any objections must be filed by the end of business today, Delphi said.

Delphi filed for Chapter 11 in October 2005. It still produces about 10 percent of the parts used in GM’s global production and its components go into nearly all of GM’s North American production lines.

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Delphi

Still no answers for Delphi retirees
Twenty-two thousand Delphi Corp. retirees found out 16 months ago their pensions were being turned over to a federal agency. In July 2009, the Pension Benefit Guaranty Corp. took control of those pensions, which meant possible cuts of anywhere from 30 percent to 70 percent in the retirement plans.
Hourly employees faced the same situation, except General Motors agreed to top off those pensions. Salaried retirees did not have their pensions topped off by anyone.
Now they want to know why. Letters, testimonies and speeches have asked the U.S. Treasury Department, the department’s Auto Task Force and the Obama Administration for information on that decision was made.

August 1, 2010 1 Photo
Delphi retirees group came together quickly
Salaried workers and retirees lost big chunks of their pensions in July 2009, and almost as quickly, the Delphi Salaried Retiree Association was formed.
The DSRA actually started forming when it was announced Delphi was eliminating health care and life insurance benefits for salaried retirees as of April 1, 2009. There are roughly 22,000 salaried Delphi retirees nationwide.

August 1, 2010
DELPHI: UAW supports salaried retirees' fight for pension equity The United Auto Workers are supporting Delphi salaried retirees who are fighting to save their pensions.
January 27, 2010
DELPHI: Salaried retirees gain key support in fight against pension cuts Delphi Corp. salaried retirees and employees have gained a vote of support from some members of the U.S. House of Representatives.
December 3, 2009
BUSINESS: Delphi emerges from bankruptcy
October 7, 2009
DELPHI: Approval of bankruptcy exit plan hailed by local political leaders Local political leaders hailed as good news Thursday’s announcement about the approval of Delphi Corp.’s bankruptcy exit plan.
July 31, 2009
BUSINESS: Delphi asking court for bid approval A hearing on Delphi Corp.’s plan to hand control of the company to its lenders and eventually end its nearly four-year stay in Chapter 11 got under way Wednesday in New York City with arguments from attorneys representing the auto supplier and some of those objecting to the plan.
July 30, 2009
DELPHI: Auto parts maker in court today on bankruptcy exit plan Delphi Corp. will be in court today asking for approval of a modified plan that could end a four-year adventure in Chapter 11 bankruptcy.
July 28, 2009
DELPHI: Creditors win in auction for company's assets Auto parts maker Delphi Corp. said Monday its creditors won out over a California private-equity firm in an auction for the company’s assets as it moves to emerge from bankruptcy protection.
July 27, 2009
DELPHI: GM buy-back progresses; retiree benefits gain support Support has come for both General Motors’ plan to buy back Delphi plants and for Delphi’s salaried retirees.
July 13, 2009
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