Delphi said Thursday it expects a key investor in its bid to emerge from bankruptcy protection to pull out of the deal, but the company says other investors are sticking with a plan to pump up to $3.4 billion into the auto-parts maker, according to AP.
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A spokeswoman for Delphi told AP that it anticipates Cerberus Capital Management will leave a group of investors that in December pledged to sink capital into the company.
Delphi will proceed with an investment group of Appaloosa Management, Harbinger Capital Partners Master Fund I, Merrill Lynch & Co. and UBS Securities, spokeswoman Claudia Piccinin said.
“We’re still moving forward, but the makeup of our investment group may look different and could include additional investors,” she said.
When the agreement was announced in December, the company said it was contingent on reaching a wage and benefit agreement with labor unions.
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By GlobalDataThe AP report noted that negotiations involving the investors, Delphi, GM and the UAW have recently entered a sticky patch. The UAW has rejected a wage offer and UAW President Ron Gettelfinger has threatened strike action if Delphi proceeds with an effort to get bankruptcy court permission to scrap its labor contracts.
