Yesterday, the New York bankruptcy court dismissed many of the objections raised by union groups with concerns about the workers' pension and various state tax and workers compensation agencies, Autonews informs.
"Neither GM nor the DIP lenders have an open wallet," Judge Robert Drain motivated his ruling. He added that the sale should conclude on Tuesday, with the closing arguments. Hinting that the sale is on the verge of being approved, he said there will be no need for long arguments today, as both Delphi and its lenders have been "pursuing a path that's consistent with good business judgment."
General Motors expressed their support over the lenders' bid on Tuesday, saying they "are pleased that Delphi is now positioned to move forward in its restructuring." The lenders' offer is to convert 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.
The other bidder for Delphi's assets, Platinum Equity, backed, according to some reports, by the Obama administration, said it has the only offer that would best serve the interests of all those involved in the bankruptcy process. Now, Platinum is seeking a $30.5 million expense reimbursement for its efforts to complete the deal.