Federal-Mogul may make a bid for Delphi
Bankruptcy court rules against Platinum Equity as sole bidder
Tom Stundza -- Purchasing, 7/8/2009 2:21:12 PM
Federal-Mogul may make another bid for the assets of Delphi Corp. after breaking off talks with the bankrupt auto parts maker in late May, people with knowledge of the situation have told Reuters.
Federal-Mogul, a maker of automotive consumer products and components, is controlled by billionaire investor Carl Icahn. The Southfield, Mich-based firm had discussions about buying all or part of Delphi before the supplier agreed to sell most of its global operations to private equity firm Platinum Equity. However, U.S. Bankruptcy Judge Robert Drain has ordered Troy, Mich-based Delphi to allow other bids that could compete with Platinum's offer.
Delphi was spun off by General Motors in 1999 and filed for bankruptcy in 2005.
GM, which is coming through its own bankruptcy process with $50 billion in U.S. government financing, has agreed to provide $2 billion of funding to Beverly Hills, Calif.-based Platinum.
The Platinum deal for Delphi was negotiated with the involvement of U.S. officials at the same time that the White House-appointed autos task force was readying the June 1 bankruptcy filing for GM, court documents show. However, the judge is siding with Delphi creditors, who have complained that the Platinum and GM transaction was negotiated in secret and would short-change their interests and investments.
Know contract law, and keep up morale
06/04/2009Steel surcharge's next arena: the courthouse
03/07/2004Platinum Equity buys cable subsidiary
02/09/2010GM to Delphi: No more charity
05/01/2006
Now Playing: 
