TROY, Mich. -- The
Detroit Free Press has reported that hundreds of constituents have filed objections to Delphi Corp.’s pending sale to California private equity firm Platinum Equity. Platinum Equity is slated to buy the Troy, Mich.-based parts supplier out of bankruptcy in a $3.6 billion deal. General Motors is providing more than $2.5 billion of the funding for the purchase.
According to the
Free Press report, Delphi’s lenders JP Morgan Chase, argues that the sale would violate bankruptcy law if Delphi were to fail to pay its bankruptcy loan in full. Also filing objections were the state of Michigan and retired Delphi employees, who claim that the sale could lead to a reduction in pension payments. The plan calls for the retiree pension plan to be turned over to the government.
A hearing on the sale is scheduled for July 23.