GM Statement re: Court order for Delphi to hold an auction for
Delphi assets
On June 16, 2009, Judge Robert Drain of the U.S. Bankruptcy
Court for the Southern District of New York approved a sale
procedures order for Delphi Corporation. This order provides that
Delphi's assets will be sold pursuant to an open process either to
Platinum Equity or to other potential bidders who submit a
competing bid. Importantly, Judge Drain has scheduled a final
hearing for July 23, 2009, and the parties expect an approved
transaction to close by the end of July.
GM fully supports a competitive bidding process as provided for
in the court order, whereby parties are free to submit competing
bids to Delphi. GM, as Delphi's largest customer, will evaluate
whether to support any potential offer, including whether to
provide financing to facilitate such an offer, based on a number of
principles.
Over the past several months, GM has articulated these
principles to Delphi and to all parties that have indicated an
interest in Delphi, including the Delphi Debtor in Possession (DIP)
lenders. These principles will continue to guide GM's prospective
support for any potential offer. Specifically, in order to obtain
GM's support, the transaction must, at a minimum:
* Provide a full and final global resolution to Delphi's
bankruptcy case;
* Provide a strong team to lead Delphi and a business plan that
will result in a healthy and well-capitalized Delphi that will
serve as a long-term, extremely stable supplier to GM;
* Provide GM with the right to acquire key sites and operations;
and
* Provide a high level of certainty of closing within the
timeline outlined by the U.S. Bankruptcy Court.
GM believes it is of critical importance that the Delphi
situation be resolved as soon as possible. As previously disclosed,
GM is prepared to advance needed liquidity to Delphi, but only in
the context of a committed transaction process that addresses all
of the principles described above. To date, only Platinum Equity
has been able to address all of these principles and to commit to a
final transaction. All other third parties who had approached
Delphi had agreed to the same timetable but did not present a
final, committed transaction by June 1. Nevertheless, GM fully
supports Judge Drain's decision to allow any other party an
opportunity to meet these conditions and to participate in the
bidding process within the timeline approved by the Court to
successfully resolve the Delphi bankruptcy case.
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CONTACT(S):
Renee Rashid-Merem
313-665-3128 (o)
313-710-8560 (c)
renee.rashid-merem@gm.com
Tom Wilkinson
313-667-0366 (o)
313-378-6233 (c)
tom.wilkinson@gm.com