Bankrupt supplier Delphi
was expected to finalize a financing package this morning that would finally allow the company to emerge from the red, but in the 11th hour one of its investors backed out leaving the supplier, its largest customer General Motors
and the company's shareholders in the lurch. Appaloosa Management LP had lead a $2.55 billion equity plan that was a large part of Delphi's financing package, and without which, the supplier will have to remain in its technically bankrupt state until other arrangements can be made. Appaloosa expressed that it would be willing to consider alternative arrangements, while Delphi has suggested it may take the investment firm to court. For its part, GM
, which also pledged up to $2.8 billion in loans for Delphi, expressed its regret over this morning's turn of events in a press released pasted after the jump.
[Source: Automotive News
, sub. req'd]
PRESS RELEASE:GM Statement Regarding Delphi Plan InvestorsGM is disappointed in the decision by Appaloosa and the plan investors to withdraw their support for Delphi. There has been a tremendous amount of effort and progress made to establish the foundation that would enable Delphi to emerge from Chapter 11. GM will continue to work with the involved parties to facilitate Delphi's efforts to emerge from bankruptcy.