Delphi’s Race To Redemption

July 22, 2009

Delphi may close to the finish line, bringing to a close its four-year-long bankruptcy. The Pension Benefit Guaranty Corporation says it will take over the pension plans of 70,000 Delphi workers and retirees. That can’t be anything but good news for potential bidders for Delphi assets.

Talks between Delphi and its lenders have been progressing toward a compromise deal that would supersede a bid by private equity firm Platinum Equity favored by GM and the U.S. Treasury, sources have told us. What else might it take to get Delphi to the finish line? The next few days will tell if enough has been done.

Last night the federal judge hearing the case postponed the auction of Delphi’s assets until Friday. A hearing to approve the reorganization plan (or sale) is now scheduled for next Wednesday. Delphi said it expects to announce the outcome of the auction perhaps by Monday. What’s a few more days after years in the tank?

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