After a four year stay in bankruptcy, Delphi may finally emerge from Chapter 11 protection. Delphi entered Chapter 11 bankruptcy in 2005 but could emerge in the coming weeks as Preside Obama’s auto task force pressures the Michigan-based automaker to sell its remaining assets.
Some of Delphi’s remaining assets will likely be sold to other automotive suppliers and investments firms, but at least a portion of the business will return to General Motors. Delphi was a former division of GM but was spun off in 1999.
According to Automotive News, GM will take ownership of five U.S. Delphi plants. GM will also operate Delphi’s other UAW-manned facilities as wholly owned subsidiaries.
Talks between Delphi, its bondholders and the court are ongoing, but it remains unclear when a deal might finally be struck. Some sources have indicated a deal could be reached as early as this weekend but there are still plenty of hurdles left before Delphi can finally emerge from Chapter 11.
