Delphi investor backs out, bankruptcy exit delayed
 

Filed under: Government/Legal, GM, Earnings/Financials
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Bankrupt supplier Delphi was expected to finalize a financing package this morning that would finally allow the company to emerge from the red, but in the 11th hour one of its investors backed out leaving the supplier, its largest customer General Motors and the company's shareholders in the lurch. Appaloosa Management LP had lead a $2.55 billion equity plan that was a large part of Delphi's financing package, and without which, the supplier will have to remain in its technically bankrupt state until other arrangements can be made. Appaloosa expressed that it would be willing to consider alternative arrangements, while Delphi has suggested it may take the investment firm to court. For its part, GM, which also pledged up to $2.8 billion in loans for Delphi, expressed its regret over this morning's turn of events in a press released pasted after the jump.

[Source: Automotive News, sub. req'd]Continue reading Delphi investor backs out, bankruptcy exit delayed

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