Creditors planning to buy the assets of bankrupt Delphi will probably try to resell the company to recoup their investment rather than run it for the long term, analysts said.
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Lenders including Elliott Management and Silver Point Capital will look to claw back at least US$3.5bn in bankruptcy financing through a sale, consultants CSM Worldwide told Bloomberg News.
Delphi, the former General Motors component group and once the world’s largest parts supplier, will emerge after almost four years in Chapter 11 protection if the US bankruptcy court approves the creditors’ plan in a hearing later today.
Analysts added that the lenders will hope the automotive market and stock market turn around in a couple years so they can then sell their equity.
Delphi has not provided a value for the creditors’ bid, which includes about $3.5bn in debtor-in-possession loans and additional financing that hasn’t been disclosed. It would be left with mostly international operations, with GM buying many of the partsmaker’s US plants.
