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.
05/29, 11:46 AM
posted by:
saabaru1
“…as Preside Obama’s auto task force pressures the Michigan-based automaker…”
I like this new title, Preside, it sounds like Premier.
and.. which auto’s does Delphi make again?
05/29, 12:12 PM
posted by:
Borat
Delphi is a maker of GM vehicles. None of those vehicles could be build without Delphi and it is clear that spawning Delphi was the first step of GM’s bankruptcy (bad assets separated from good). Unfortunately for taxpayers, former “bad assets” are intertwined with “good” ones and cars can’t be produced without them. There are no lessons learned here, since spawn occurred over 10 years ago and nothing changed to the better.
05/29, 12:16 PM
posted by:
saabaru1
Correct me if I am wrong, but they are a parts supplier, not an automaker. The lesson to be learned here is that bankruptcy takes a long time, unless the government owns your company.
05/29, 2:25 PM
posted by:
Borat
Cars are made of autoparts. If you separate factories and call them parts factories not car factories, what changed?