MSN MoneyCentral – Delphi has agreed to give its two largest shareholders access to more confidential data as the pair of hedge funds try to put together a restructuring and refinancing package forthe bankrupt US car parts maker.<\/p>\n
Appaloosa Management and Harbinger Capital Partners, which together have 14 per cent of Delphi’s shares, will be allowed to examine data previously provided to their lawyers under strict secrecy conditions.<\/p>\n
The move confirms the seriousness of the approach to Delphi a month ago by the two hedge funds, which specialise in distressed situations. They have hired UBS and Merrill Lynch as advisers and given them right of first refusal to lead any debt or equity funding necessary as part of a deal to bring the supplier out of Chapter 11 bankruptcy protection.<\/p>\n
The fate of Delphi, until recently the world’s largest car parts supplier, is critical to the future of General Motors, the troubled carmaker and its biggest customer.<\/p>\n
Getting Delphi back on a sound financial footing would be good news for GM, but the carmaker may not be keen to negotiate with hedge funds that have shown their willingness to fight hard for returns.<\/p>\n