Tier One automotive supplier Delphi (Troy, MI) has accepted $3.4 billion in financing from private-equity investors as a means to emerge from bankruptcy reorganization. Pending court and stakeholder approval, the deal would move current CEO Robert Miller to executive chairman and make current president and COO, Rodney ONeal, the CEO and president of a reorganized Delphi.
As part of the deal, former parent and largest single customer, General Motors, would receive 7 million out of a total of 135.3 million shares of common stock, $2.63 billion in cash, and be released from any so-called estateclaims against GM, which go back to pension and other commitments to Delphi employees that came over from the former automaker. GM and Delphi are negotiating to shore up salaried and hourly pension plans, allotting $3.5 billion. The deal would include GMs support of the wind-down of certain Delphi facilities and the sale of certain lines and sites. Earlier in 2006, Delphi announced its intention to move away from the interior-trim market.[email protected]