It's taken nearly four years, but Delphi Corp. is finally preparing to emerge from bankruptcy. When Troy, Mich.-based Delphi, once the world's biggest auto supplier and the one time parts unit of General Motors Corp., entered Chapter 11 protection to restructure its debts in October 2005, no one expected the work would be easy, but the faltering North American auto industry threw multiple wrenches into its plans. Over the years, Delphi shed workers and operating units, including selling its $1 billion interiors unit to private investment group Renco Group Inc., which turned the parts into the new Inteva Products LLC. Delphi saw its global sales fall from more than $24 billion the year before it filed for bankruptcy to about $18 billion as lawyers, creditors and investors weighed options for a new Delphi. The company that is expected to fully emerge from Chapter 11 in the next month still has extensive plastics operations within its electronics and heating and air conditioning units. In the meantime, auto sales fell dramatically, Delphi's one time parent, Detroit-based GM, entered and exited Chapter 11 itself in a speedy restructuring in which the U.S. government took a stake in the company, while Chrysler Group LLC in Auburn Hills, Mich., went through a similar bankruptcy filing that saw a controlling stake purchased by Italy's Fiat Auto SpA. In the end, the plan approved by the U.S. Bankruptcy Court in New York gives ownership in the company to former lenders in exchange for $3.4 billion in loans, while GM will take over some steering component operations again. More track the long history of Delphi's bankruptcy and find a wealth of details, including links to court documents, check out Delphi's Web site. Thanks to Plastics News' Detroit-based staff reporter Rhoda Miel for this item.
After four years, Delphi emerging from bankruptcy
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