Delphi Bankruptcy Exit on Hold
Delphi asked for an extension of bankruptcy protection Friday as the auto parts maker struggles to find loans in an inhospitable credit market. Delphi, seeking $6.1 billion in loans as credit markets seize up, has asked for a two-month extension. It said earlier that it planned to emerge from Chapter 11 court protection at the end of March.
Ford to Manufacture Some Parts In-house
For decades, Detroit automakers have outsourced parts work — from axles to cup-holders — to suppliers that employ thousands of workers nationwide, and increasingly, in low-cost countries such as Mexico and China. The suppliers develop and build the parts. Then they ship them back to the automakers, where they are assembled into shiny new Ford F150 pickups and Chevrolet Malibu sedans.
Delphi Bankruptcy Exit in Jeopardy
A plan by auto parts supplier Delphi Corp. to exit bankruptcy by the end of next month is in jeopardy as it struggles to get $6.1 billion in loans in the tight credit market. If the company does not secure the exit financing it needs by the end of March, equity investors led by hedge fund Appaloosa Management LP could abandon a deal to invest as much as $2.55 billion. The deal is crucial to Delphi’s ability to emerge from Chapter 11 protection.
CHAMCO AUTO Forms Chamco West to Serve as Exclusive Distributor for Vehicles from China
PARSIPPANY, NJ — CHAMCO AUTO, a NJ-based distribution and engineering company, has announced the formation of CHAMCO AUTO West, which will serve as the exclusive distributor of vehicles from CHAMCO AUTO’s Chinese and other subsidiaries. Chamco West is 50 percent owned by Scott Thomason, founder and former CEO of Thomason Auto Group. Thomason, who currently
Delphi Can Begin Bankruptcy Vote Process
Delphi Corp. can begin soliciting votes for its plan to exit bankruptcy, the company’s lawyer said on Friday, a major step toward letting the auto parts maker proceed with a restructuring that would shed thousands of jobs in plants across the country. Delphi attorney Jack Butler said bankruptcy judge Robert Drain verbally approved the order on Friday and that if all changes the judge requested meet his requirements, he would enter an order today. Delphi’s reorganization plan includes shrinking its unionized work force to a fraction of its former size and shifting manufacturing overseas.
Judge Approves $6.8 Billion in Delphi Loans
A judge approved on Friday a $6.8 billion financing plan for Delphi Corp.’s exit from bankruptcy. But the judge also admonished potential equity investors who he said had drained away hundreds of millions of dollars as the auto parts supplier disclosed new terms earlier this week for investing in the company. Delphi, which is based in Troy, MI, had originally sought $8.7 billion in loans, but had reduced that amount and delayed voting on its reorganization plan as it struggled to secure the financing in a tighter credit market.
Delphi Investor Hasn’t Pulled Out
A key investor in Delphi Corp.’s plan to exit bankruptcy protection says it has not pulled out of the deal as expected by the troubled auto parts supplier. Delphi officials said April 19 that the company had been told that Cerberus Capital Management LP would leave a consortium of investors who would pump up to $3.4 billion into the company in exchange for new shares of Delphi stock. Nearly a week later, Cerberus spokeswoman J.J. Rissi in New York said that has not happened.
One of Delphi’s Main Investors Expected to Drop Out
Cerberus Capital Management is expected to withdraw its plans to invest in Delphi Corp., just as the auto supplier prepares to emerge from bankruptcy protection, Delphi said in a statement Thursday. Cerberus was one of five firms planning to invest a total of $3.4 billion for a majority stake in a reorganized Delphi. The private equity firm, which is buying Tower Automotive and has shown interest in the Chrysler Group, hasn’t officially backed out of the deal, Delphi said.
Valeo May Attract Bid from U.S. Investment Fund
From AFX News Limited PARIS — U.S. investment fund Apollo may launch a bid for French car parts maker Valeo, Les Echos reported without naming its sources. The fund would be backed by investment banks Lazard and Merrill Lynch, according to the business daily, which added that the Valeo board was scheduled to meet Thursday.
Delphi Talks Likely to Go Past Deadline
A deadline that threatens a key cash infusion for struggling auto parts maker Delphi Corp. likely was to pass with no agreement between the company, its unions, General Motors Corp. and a group of investors, a person familiar with the negotiations said on Wednesday. The person, who asked not to be identified for fear of jeopardizing the negotiations, said talks were under way and likely will continue past Wednesday’s deadline into February or beyond because investors have no intention of walking away from the deal.