General Motors Corp will play a major hand in the financing needed for Platinum Equity to take control of Delphi Corp, a press report has said.
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The Wall Street Journal cited a source familiar with the situation saying that GM would provide more than US$2.5bn of the total $3.6m needed for the deal to go ahead. Platinum would need only to invest $750m, the report said.
The Wall Street Journal added that the terms of GM’s loan were not known.
Earlier this week, Delphi said it has reached a deal to sell most of its global operations to private equity firm Platinum Equity, allowing it to emerge from Chapter 11 bankruptcy protection.
Under the new reorganization plan for the former parts affiliate of General Motors Corp , Parnassus Holdings II LLC, a unit of Platinum Equity, would acquire and operate Delphi’s US and non-US businesses with emergence capital and capital commitments totalling US$3.6bn.
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