A bankruptcy judge has given Delphi the OK to tap General Motors for $250 million in funding. Delphi has been under Chapter 11 bankruptcy protection for the last four years, but could soon emerge thanks to the support of General Motors.
Delphi filed for bankruptcy in October or 2005 but is nearing a deal that will help the ailing supplier emerge from Chapter 11 protection. Delphi announced earlier this month that it has reached an agreement to sell most of its global assets to the private equity firm Platinum Equity.
Delphi was formerly GM’s parts division but was spun off in 1999. However, Delphi remains one of GM’s largest part suppliers. In all, GM has buoyed Delphi over the past few years with about $11 billion in funding, according to Automotive News.
GM filed for bankruptcy on June 1st but was granted approval to continue supporting suppliers during its time under Chapter 11 protection.
