Chad Deal 11 a.m., Nov. 25
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:
- Ex-U-T owner was "good guy" in Romney's alleged auto bailout profiteering — Nov. 1, 2012
- 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