GM To Finance Delphi Buyout
General Motors (GM) has agreed to finance private equity firm Platinum Equity’s buyout of Delphi Corp. GM will provide more than $2 billion to Platinum Equity for purchasing most of the assets of Delphi.
Troy, Michigan-based Delphi, which has been operating under bankruptcy protection, is a former GM subsidiary and the auto-maker’s largest supplier. Under the deal, Platinum Equity will acquire most of Delphi's global operations, including its Troy headquarters.
GM is also acquiring some troubled assets of Delphi. Further, the company is providing $250 million to help Delphi emerge from bankruptcy protection.
Renee Rashid-Mere, GM spokeswoman, said: “Relative to GM's support, the anticipated funding for the investment was contemplated in GM's revised viability plan, as well as the overall debtor-in-possession financing budget agreed to with the US Treasury prior to GM's filing for Chapter 11.”
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