New York (HedgeCo.Net) – It doesn’t help matters when a company, who is at the forefront of a government bailout, is expected to provide rescue to another faltering company.  But that’s exactly what General Motors has found themselves in the middle of, as Delphi is again turning to their former parent company for assistance.

GM is in talks to buy back some parts of the Troy, Michigan-based auto parts supplier, including some unprofitable plants.  While this may help Delphi achieve the exit refinancing that they need to emerge from Chapter 11, it certainly doesn’t make things easy on GM, who is already set to receive over $13 billion in government aid.    However, some believe that Delphi’s dependence could help GM’s case in requesting more federal funds.

Since Delphi filed for bankruptcy protection in October 2005, they have faced a string of disappointments in trying to secure the needed capital.  A $6.1 billion refinancing plan, led by hedge fund Appaloosa Management, was supposed to provide the influx of capital.  GM had also promised a $2 billion chunk of the puzzle to ensure Delphi met the minimum requirements.  When the hedge fund backed out of the deal at the last minute, Delphi was left without an alternative.               

GM has agreed to advance up to $100 million this month to Delphi, to keep the company running for the next few months.  Delphi has until Feb 27th to restructure its exit plan, including an amended budget with payouts to creditors and how they plan on becoming profitable following the exit of Chapter 11 protection.  They have also requested that the U.S. Bankruptcy Court allow them to halt their retiree medical benefits.  

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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New York (HedgeCo.Net) – Philip Richards, head of hedge fund RAB Capital, is stepping down and will be replaced with Finance Director Stephen Couttie, according to a statement made by the company yesterday.

Richards ran the $1.4 billion Special Situations Fund, which received poor press and even worse returns when it lost millions thanks to the nationalization of Northern Rock in February.

Richards will still be employed by RAB, serving as an executive director while still managing the Global Mining and Resources funds, which holds assets of around $210 million.  He made headlines recently with his controversial personal stake in Bahamas-based oil exploration company BPC, in which his Special Situations Fund along with Falkland Gold & Minerals facilitated a takeover bid that earned him a hefty paycheck.

RAB currently manages around $5.9 billion in assets, a sharp drop from the over $7 billion it managed in 2007.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
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Times Online- Hedge fund RAB Capital, one of the largest shareholders in Northern Rock when the bank was nationalised in February, this morning announced that its first half pre-tax profit had almost halved and assets under management had shrunk by more than $1 billion in six months.

RAB’s $1.4 billion Special Situations Fund, managed by its chief executive Philip Richards and among the best performers for some years, plunged 23.1 per cent.

The fund had an 8.18 per cent holding in Northern Rock and major positions in African Minerals, a London-based diamond miner, and Falklands Oil and Gas.

The news comes as many of the world’s activist hedge funds are suffering this year, with some posting losses of more than 20 per cent of their funds.

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