TROY, Mich. Delphi Holdings LLP has completed its acquisition of substantially all of Delphi Corp.’s global core businesses as part of the consummation of the Delphi Corp. Modified Plan of Reorganization. This was the final action standing in the way of Delphi’s emergence from Chapter 11 bankruptcy protection, which has occurred nearly four years to the day since the company originally filed on Oct. 8, 2005.
Rodney O’Neal will remain president and CEO of the company, and the current leadership will continue to manage the company’s global operations.
“We are grateful for the support and loyalty of our customers, who have placed their trust in Delphi’s ability to provide world-class products and uninterrupted supply, and the support of our suppliers who have contributed broadly to our efforts,” O’Neal said. “We are also thankful for the dedicated Delphi employees who remained focused on our customers, and the communities in which we operate for their unwavering support during the most challenging period in our history. Additionally, we are grateful for and recognize the sacrifice made by many constituent groups throughout our restructuring.”
Delphi’s balance sheet will be sufficiently capitalized to invest in technology, and to absorb planned restructuring and resultant social costs as the company consolidates excess capacity around the world,” O’Neal said. “We expect 2010 gross engineering and R&D spending to be about 11 percent of sales, allowing us to maintain our intense focus on technologies, products and services that help our customers deliver vehicles that are safer, greener and allow purchasers to remain connected to their busy lives.”
The company’s product portfolio will remain centered on electronics and safety; powertrain; thermal; electrical and electronic systems; OE service; and the independent aftermarket.
“We are clearly focused on game-changing technologies that meet market demands and help address societal concerns in an intense global environment. We expect that the industry and the competitive environment will continue to be demanding, but the restructuring we have already completed creates a strong platform and we expect to capitalize on that,” O’Neal said. “We are excited about the potential for our future and for assuring that Delphi remains among the premier supply companies in the world. We are a more agile, nimble and resilient company and are eager to begin the next part of our journey with our customers, employees and suppliers.”
Completion of the transaction in Russia and South Africa is subject to pending regulatory approvals.
The acquisition was led by Elliott Management and Silver Point Capital in their capacity as senior creditors of Delphi.