Tuesday, 02 June 2009 08:56

Delphi to come out of Chapter 11

Delphi will sell some assets to a private-equity firm and emerge from bankruptcy protection. The parts supplier has been operating under Chapter 11 protection since October 2005. The deal may be finalized on July 23.

Parnassus Holdings and GM will be the new owners.

GM will acquire some of the company's North American plants, including its global steering business.

"GM is pleased that Delphi has agreed to move forward with plan modifications and is committed to completing these transactions through a 363 (asset) sale if stakeholder support is not sufficient to achieve prompt confirmation of the modified plan," GM said in a statement. "These developments represent an important step in resolving the Delphi bankruptcy and in GM's own restructuring efforts."

Delphi was a GM parts subsidiary until 1999 but the two companies are still interrelated. GM dependent on parts from Delphi and Delphi needs GM for financing. Previously, GM had announced that it would take over two of Delphi's plants in NY. See related story .

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