It’s been a long time coming, but Delphi has finally done the deal that allows it to exit bankruptcy after almost four years. New Delphi is owned by its major creditors and former parent GM.
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Lenders including Elliott Management Corp. and Silver Point Capital LP are buying most of Delphi.
The parts maker, under the new name of Delphi Holdings LLP, said in a statement yesterday that it’s emerging as “a more agile, nimble and resilient company.” GM is purchasing some of its US plants and global steering operations.
Rodney O’Neal will remain President and CEO and the current leadership will continue to manage the company’s global operations.
“We are grateful for the support and loyalty of our customers, who have placed their trust in Delphi’s ability to provide world-class products and uninterrupted supply, and the support of our suppliers who have contributed broadly to our efforts,” O’Neal said.
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By GlobalData“We are also thankful for the dedicated Delphi employees who remained focused on our customers, and the communities in which we operate for their unwavering support during the most challenging period in our history. Additionally, we are grateful for and recognise the sacrifice made by many constituent groups throughout our restructuring.”
Delphi said its balance sheet will be sufficiently capitalised to invest in technology, and to absorb planned restructuring and resultant social costs as the company consolidates excess capacity around the world, O’Neal said.
“We expect 2010 gross engineering and R&D spending to be about 11 percent of sales, allowing us to maintain our intense focus on technologies, products and services that help our customers deliver vehicles that are safer, greener and allow purchasers to remain connected to their busy lives.”
The company’s product portfolio remains centredon electronics and safety; powertrain; thermal; electrical and electronic systems; OE service; and the independent aftermarket.
“We are clearly focused on game-changing technologies that meet market demands and help address societal concerns in an intense global environment. We expect that the industry and the competitive environment will continue to be demanding, but the restructuring we have already completed creates a strong platform and we expect to capitalise on that,” O’Neal said.
“We are excited about the potential for our future and for assuring that Delphi remains among the premier supply companies in the world. We are a more agile, nimble and resilient company and are eager to begin the next part of our journey with our customers, employees and suppliers.”
Completion of the transaction in Russia and South Africa is subject to pending regulatory approvals.
The acquisition was led by Elliott Management and Silver Point Capital in their capacity as senior creditors of Delphi. Representatives from Elliott and Silver Point jointly stated that, “As major investors in the new Delphi, we believe this transaction will provide a solid financial foundation for the company’s growth and success as a world leader in the global automotive industry. We are extremely pleased to have played a significant role in the creation of the new Delphi.”
GM Chief Executive Officer Fritz Henderson said in a statement that “the closing transactions allow Delphi to effectively serve its customers by focusing on its core business. The agreements also enable GM to access essential components and steering technologies.”
