Associated Press – Delphi nearly emerged from Chapter 11 last year, but was forced to redraw its reorganization plan after a group of investors, led by the Appaloosa Management LP hedge fund, pulled out of an investment deal in April 2008.
After that, Delphi struggled to find the financing it needed to restructure. Those troubles were complicated by the collapse of investment banks in the fall and the drop-off in new vehicle sales.
Months later, those factors also helped drive both GM and Chrysler into Chapter 11.
In June, Delphi had agreed to let an affiliate of Beverly Hills, Calif.-based Platinum Equity take control of most of its businesses with the help of billions from GM. But Delphi’s lenders balked at the deal and submitted their own bid which ultimately won out over the deal with Platinum after an 18-hour auction process.