"At the conclusion of the bidding at the auction on July 27, the proposal from the Debtor in Possession (DIP) lenders was deemed successful by Delphi and provided better economics to GM than that from Platinum Equity. GM supports this bid, which is still subject to Delphi bankruptcy court approval, and we are pleased that Delphi is now positioned to move forward in its restructuring. A court hearing seeking approval of the bid is scheduled for July 29," GM said in the release.
Delphi, who is under bankruptcy protection since 2005, was presented an offer from the lenders to take over the company by converting the $3.5 billion they are owed into equity. The lenders who submitted the bid include Elliott Management, Silver Point Capital and Monarch Alternative Capital.
Platinum Equity on the other hand has been negotiating the Delphi bid with the US auto task force and is backed, according to some reports, by the Obama administration. Platinum says it has the only offer that would best serve the interests of all those involved in the bankruptcy process.
Additional bids to the one forwarded by Platinum were allowed on June 16, when the New York bankruptcy court allowed Delphi to consider bids for the company in addition to the bid from Platinum Equity.
The sale of Delphi's assets will be decided on July 29, when a court hearing seeking approval of the bid is scheduled.
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