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.
Earlier this week Delphi’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 (£2bn) of debtor-in-possession loans.
General Motors, Delphi’s former parent, would take over some of the company’s US plants, and has agreed to provide some further funding to Delphi.
Judge Robert Drain approved the sale during the second day of a hearing in US bankruptcy court.