Jeff Smith 4 p.m., Dec. 20
Platinum Deal for Delphi Delayed Again
The auction for assets of bankrupt auto parts maker Delphi was delayed again by the New York bankruptcy court -- from yesterday (July 21) to Friday. Beverly Hills-based Platinum Equity, the buyout firm that now owns the Union-Tribune, is bidding to take over Delphi with a huge subsidy from General Motors, which is controlled by the U.S. government. Creditors, who stand to make 20 cents on the dollar, have called it a sweetheart deal. Court documents indicate that creditors have voted against the plan: of seventeen classes of creditors, ten voted against it, two for it and five didn't vote, according to the Associated Press. Creditors may put together a bid for Delphi on Friday.
Says Reuters, quoting sources, "Talks between Delphi and its lenders have been progressing toward a compromise deal that would supersede a bid by private equity firm Platinum Equity favored by GM and the U.S. Treasury."
More like this:
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- Platinum Equity Loses Bid for Delphi — July 28, 2009
- Who's Harassing Whom? — July 15, 2009
- Platinum's Juicy, Subsidized Deal for Delphi Runs into Snag — June 11, 2009
- Black Press's Red Ink Mounts — May 12, 2009