Judge approves sale of Delphi to its lenders and the new GM

A US judge ruled yesterday that car parts maker Delphi can sell itself to a group of lenders, paving the way for the company to end its near four-year trip through bankruptcy court.<br /><br />Earlier this week Delphi&rsquo;s board accepted a bid from its debtor-in-possession lenders, including several hedge funds, to take over much of its operations. In exchange, the lenders, which include Elliott Management, Monarch Alternative and Silver Point, agreed to forgive nearly $3.5bn (&pound;2bn) of debtor-in-possession loans.<br /><br />General Motors, Delphi&rsquo;s former parent, would take over some of the company&rsquo;s US plants, and has agreed to provide some further funding to Delphi.<br /><br />Judge Robert Drain approved the sale during the second day of a hearing in US bankruptcy court.

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