Thursday July 30, 07:53 PM
Delphi wins approval to exit bankruptcy
NEW YORK (AFP) - Delphi (DPHIQ.PK - news) , the former auto parts arm of General Motors (NYSE: GM - news) , said Thursday a judge approved its plan to exit bankruptcy protection and that it expects to emerge "during the current calendar quarter."
The company, spun off from GM in 1999 and in bankruptcy protection since October 2005, said its plan to emerge from Chapter 11 supervision had been approved by the US Bankruptcy Court for the Southern District of New York.
"The plan provides for the restructured company to emerge from Chapter 11 as soon as remaining steps are completed, including regulatory approvals," Delphi said.
"We expect closing to occur during the current calendar quarter ... We expect to emerge as a well-capitalized, strong and resilient company, with a clear focus on remaining a premier global supplier to the world's (automakers), the aftermarket and our medical industry customers."
The new plan gives control of Delphi to a group of creditors, instead of an alternate plan unveiled last month that would have allowed private equity fund Platinum Equity to assume operations.
The decision was made earlier this week to accept a "pure credit bid" led by JPMorgan Chase and backed by the new GM, which emerged from bankruptcy this month with US and Canadian government backing.
The plan allows the creditors to get a controlling Delphi stake in exchange for some 3.4 billion dollars in debts.
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