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.
06/17, 11:14 AM
posted by:
anderson_b76
Didn’t our tax dollars just bail out GM, so shouldn’t the tax payers vote on whether to approve this or not? In fact, don’t all us Americans now own a small part of GM? OBAMA YOU ARE A JOKE!
06/17, 11:45 AM
posted by:
leftwingagenda
as a tax payer can i vote on whether you should be allowed to continue to post? this same pointless comment has been made about 12031921 times at LLN…it was pointless the first time, and strangely enough, it’s still pointless…
gm needs parts, delphi makes parts…gm needs a healthy (healthier?) delphi to make cars to continue restructuring and eventually return to profitability…it’s that simple….
06/17, 12:09 PM
posted by:
CADDY-V
left:
I know what you mean I can’t stand the whole “Tax Payer” line. It’s old.
06/17, 1:09 PM
posted by:
carstuff
Obama just said that they will not be giving more money to the suppliers and that the money will trickle down from the money they gave Chrysler and GM. This shows that this is happening.
$30 billion is a lot of money and as I have commented before where in the heck is GM going to spend it? I guess a lot of it will be going to suppliers to keep them in business to keep parts going to ALL the industry. So the money is going to help Ford and all the rest of the OEM’s with suppliers getting some help.
Hey, maybe GM can loan the money and make some good interest on it?
06/17, 1:40 PM
posted by:
Borat
Delphi was in CH 11 cause GM did not pay its bills in the first place.
06/17, 2:37 PM
posted by:
anderson_b76
Leftwingagenda….no you can’t vote on whether I want to post, because as long as America stays a Capitalistic society, despite Obama’s attempts to socialize this country, LLN is and should remain a private entity and as such you have no say in their decision to operate they way they do. You are obviously an idiot for buying into this, or your a middle class robot that buys into the left wing agenda to believe we should bail out big auto makers who make subpar products as a whole and who frankly don’t give two ****s about you. Let them desolve into smaller companies that are manageable and return developing a better product. Watch how Penske turns around Saturn.
06/17, 7:17 PM
posted by:
StepAhead
Sounds to me that the Obama teams method for sorting out the US car industry is working.