Delphi Hopes To Exit Chapter 11 As GM Enters

Tyler Durden's picture

In a Detroit Free Press article, long suffering Delphi has been reported to be in active negotiations with the auto task force over its own upcoming June 2 deadline to emerge from bankruptcy.

An attorney for Delphi says talks with members of President Barack Obama's automotive task force continue in hopes of reaching a deal to lift the auto supplier out of bankruptcy protection.

Delphi Corp. Attorney Jack Butler said the talks, which also include Delphi's creditors and its former parent General Motors Corp., will continue over the Memorial Day weekend.

It would be highly ironic if GM's main supplier which has been in bankruptcy for over two trader generations (or 10+ if you work at SAC/Millennium) actually does emerge from chapter just as its parent files the day before. Various flies on the wall are poising themselves for some harsh words over the weekend, as Rattner polishes his negotiating skills. Whatever the outcome, secured lenders (DIP B,C thought Z) will undoubtedly be thrilled.