Delphi to ride out of bankruptcy

SOUTHFIELD, MICHIGAN: Delphi said that it has agreed to a deal to sell its assets to creditors, clearing the way for an exit from Chapter 11 bankruptcy protection. The deal has the backing of the auto parts maker���s former parent, General Motors, Delphi and GM said in separate company statements.

Lenders including Elliott Management and Silver Point Capital have been in talks since June with Delphi and GM on completing the so-called credit bid, which uses the debt creditors are owed from bankruptcy loans.

���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,��� the Detroit-based automaker said in the statement.

If approved by the bankruptcy court, the creditors��� bid would supersede an offer by private equity firm Platinum Equity. Lenders opposed their bid because it called for the lowest among three tiers of lenders being paid cents on the dollar.

The lenders��� bid is ���based on a transaction structure that is similar��� to Platinum���s offer, which proposed buying some Delphi assets and transferring the steering business to Detroit-based GM.

Delphi valued the transaction with Beverly Hills, California-based Platinum at $3.6 billion, which included $2 billion in financing from GM. Delphi said it would attempt a so-called 363 asset sale if the bankruptcy court rejects the deal with creditors.

A hearing to approve the bid is scheduled for July 29 in US Bankruptcy Court in New York.