On July 10, Delphi Corp. announced that the deadline for submission by qualified bidders of potential alternative transactions to the transaction announced on June 1, 2009 with Parnassus Holdings, LLC, an affiliate of Platinum Equity LLC, and GM Components Holdings, LLC, an affiliate of General Motors Corporation, has passed without the submission of any potential alternative transactions from any of the three third-party bidders qualified under supplemental procedures previously approved by the U.S. Bankruptcy Court for the Southern District of New York.
While no alternative transactions were submitted to Delphi, the company has received a notice from JPMorgan Chase Bank, N.A., in its capacity as administrative agent under the Amended and Restated Revolving Credit, Term Loan and Guaranty Agreement dated as of May 9, 2008, that the Administrative Agent may submit a credit bid in accordance with the Modification Procedures Order and Supplemental Modification Procedures Order previously entered by the Bankruptcy Court (the “Procedures Orders”).
On June 1, 2009, Delphi announced that it planned to affect its emergence from chapter 11 reorganization through either a modified reorganization plan or sale under Section 363 of the Bankruptcy Code pursuant to which Parnassus will operate Delphi’s U.S. and non-U.S. businesses going forward with emergence capital and capital commitments of approximately $3.6 billion and without the legacy costs associated with the North American sites that are being acquired by GM Components together with Delphi’s global Steering business. Certain other residual non-core and non-strategic assets and liabilities are expected to be divested over time. The final approval hearing on the emergence transactions has been scheduled by the Bankruptcy Court for July 23, 2009.
Delphi’s Chapter 11 cases were filed on Oct. 8, 2005, in the United States Bankruptcy Court for the Southern District of New York and were assigned to the Honourable Robert D. Drain under lead case number 05-44481 (RDD).
Have your say: