Detroit News – Delphi Corp. said Monday that several major hedge funds will invest up to $3.4 billion in the company, clearing a significant hurdle to emerge from Chapter 11 bankruptcy before June30.
As part of the deal, Delphi CEO Robert S. “Steve” Miller will give up the chief executive title Jan 1. and Delphi president and chief financial officer Rodney O’Neal will become the new CEO. Miller will become executive chairman until the auto parts supplier emerges from bankruptcy.
Appaloosa Management L.P., Cerberus Capital Management, L.P., and Harbinger Capital Partners, as well as Merrill Lynch & Co. and UBS Securities will invest up to $3.4 billion in a deal signed Sunday among Delphi, its former parent General Motors Corp. and the plan investors. The hedge funds could end up owning 70 percent of a recapitalized Delphi.
Miller said the agreements represent “significant milestones in Delphi’s reorganization and another major step forward towards emergence from our Chapter 11 reorganization in the U.S.
