The majority of Delphi’s creditors have voted to reject the supplier’s plan to be acquired by California private equity firm Platinum Equity. According to a report from the Detroit Free Press, 10 classes of creditors voted against the plan, creating another roadblock for Delphi’s impending emergence from bankruptcy.
Delphi’s plan to sell its business to Platinum Equity, with financial support from former parent company General Motors, is one of two deals currently on the table. Delphi’s lender JPMorgan Chase has also made a pure credit bid for the company and an auction of Delphi’s assets is scheduled to take place today. The bankruptcy court handling Delphi’s Chapter 11 case will determine the winning bidder.