Delphi Sold to GM, Lender Group

The four year long bankruptcy of American supplier Delphi concluded yesterday with the approval for the sale of its assets to General Motors and a group of lenders. In exchange for the sale, the lender group will erase $3.5 billion of debtor-in-possession loans.

As for GM, the American manufacturer will take over four U.S.-based Delphi components operations and Delphi’s global steering business. They will become part of two new, wholly-owned GM subsidiaries, with the acquisition hoping to help GM maintain continued uninterrupted supply to its global GM car and truck operations.

"The Delphi component plants and global steering operations provide critical parts and technologies that are necessary to produce our GM cars and trucks,” Gary Cowger, Group vice president of global manufacturing and labor said. “The strength of the technology and products that these operations deliver is evident by the more than 60 customers they support globally.”

The two new subsidiaries GM will set up are the GM Components Holdings and Global Steering Holdings. The first will include four of Delphi’s U.S.-based component manufacturing facilities, two in New York (Thermal Systems in Lockport and Powertrain Systems in Rochester), one in Michigan (Powertrain Systems Grand Rapids) and one in Indiana (Electronics and Safety in Kokomo).

Global Steering Holdings will include Delphi’s Steering operations in Saginaw, Michigan, and most of the global steering manufacturing operations and engineering centers in Europe, Mexico, South America and Asia.

In addition to the two new companies set up by GM, Delphi will also form a new entity, DPH Holding, which will be comprised of "non-core" assets of the former Delphi. The completion of the sale was scheduled for the end of August.