Tuesday, June 23, 2009

What's Behind Door Number Three?

Where's Monty Hall when you need him? Can anyone turn Delphi into a profitable corporation? Or should players hand it over to the government and let bureaucrats run it?What would that do for Just-In-Time manufacturing? Would every congressman want a Delphi factory in his state to churn out parts for cars that may never leave the lot for someone's garage?


June 23, 2009

A group of hedge funds that provided auto-supply company Delphi with financing as it moves through bankruptcy aren't getting access to the firm's books, hindering their ability to make a takeover offer, according to a person familiar with the situation.

The hedge funds -- which are being led by Elliott Associates and face a July 10 deadline to decide whether or not to bid for the company and argue their efforts -- are being thwarted by Delphi, which has yet to let them look at the company's finances.

The funds provided Delphi with $2.9 billion in debtor-in-possession financing and have expressed an interest in buying the company, which is the largest supplier of auto parts to government-owned General Motors.

Delphi was to be sold to Los Angeles-based, private-equity firm Platinum Equity Partners, but the hedge funds cried foul at a plan to pay them just a fraction of the $2.9 billion they had provided to the money-losing company as part of the sale.

Earlier this month, a judge agreed and ordered Delphi to re-open the auction process.


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