PRESS RELEASE: GM Statement Re: Court Order For Delphi To Hold An Auction For Delphi Assets
Jun 17, 2009 18:43:17 (ET)
GM Statement re: Court order for Delphi to hold an auction for Delphi assets
On June 16, 2009, Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York approved a sale procedures order for Delphi Corporation. This order provides that Delphi's assets will be sold pursuant to an open process either to Platinum Equity or to other potential bidders who submit a competing bid. Importantly, Judge Drain has scheduled a final hearing for July 23, 2009, and the parties expect an approved transaction to close by the end of July.
GM fully supports a competitive bidding process as provided for in the court order, whereby parties are free to submit competing bids to Delphi. GM, as Delphi's largest customer, will evaluate whether to support any potential offer, including whether to provide financing to facilitate such an offer, based on a number of principles.
Over the past several months, GM has articulated these principles to Delphi and to all parties that have indicated an interest in Delphi, including the Delphi Debtor in Possession (DIP) lenders. These principles will continue to guide GM's prospective support for any potential offer. Specifically, in order to obtain GM's support, the transaction must, at a minimum:
* Provide a full and final global resolution to Delphi's bankruptcy case;
* Provide a strong team to lead Delphi and a business plan that will result in a healthy and well-capitalized Delphi that will serve as a long-term, extremely stable supplier to GM;
* Provide GM with the right to acquire key sites and operations; and
* Provide a high level of certainty of closing within the timeline outlined by the U.S. Bankruptcy Court.
GM believes it is of critical importance that the Delphi situation be resolved as soon as possible. As previously disclosed, GM is prepared to advance needed liquidity to Delphi, but only in the context of a committed transaction process that addresses all of the principles described above. To date, only Platinum Equity has been able to address all of these principles and to commit to a final transaction. All other third parties who had approached Delphi had agreed to the same timetable but did not present a final, committed transaction by June 1. Nevertheless, GM fully supports Judge Drain's decision to allow any other party an opportunity to meet these conditions and to participate in the bidding process within the timeline approved by the Court to successfully resolve the Delphi bankruptcy case.
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CONTACT(S):
Renee Rashid-Merem
313-665-3128 (o)
313-710-8560 (c)
renee.rashid-merem@gm.com
Tom Wilkinson
313-667-0366 (o)
313-378-6233 (c)
tom.wilkinson@gm.com
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June 17, 2009 18:43 ET (22:43 GMT)
