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ReprintsChinese government approves GM Delphi deal
September 29, 2009 - 12:01 am ET
SHANGHAI (Reuters) -- China's Ministry of Commerce has approved plans by General Motors Co. to acquire certain assets of bankrupt Delphi Corp., Xinhua, the country's official news agency, reported on Tuesday. The approval came late on Monday and had conditions attached, including a ban on GM and Delphi on exchanging trade secrets on Delphi's other Chinese customers. GM is purchasing Delphi's global steering business and four of the parts supplier's plants it used to own in New York and Indiana. Delphi hopes to exit bankruptcy at month's end under control of its lenders, which have agreed to forgive nearly $3.5 billion in debt. GM will assume more than $1 billion in Delphi obligations and waive $2 billion in claims. The automaker also plans to invest $1.75 billion and provide Delphi with loans. A New York bankruptcy judge approved the Delphi sale in July, and a regulatory review continues. Delphi has been in bankruptcy since 2005. |
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