Delphi Corp.s lenders have prepared a bid to compete with a private-equity firm and help the supplier out of its nearly four-year bankruptcy, news reports say.
The lenders struck a tentative deal early this morning with Delphi and its former parent, General Motors, The New York Times reported, citing people briefed on the matter.
The lenders said they would try to defeat Platinum Equitys bid through an offer that involves swapping Delphis debt for ownership in the company, The Wall Street Journal also said today, citing court documents.
The group of planned bidders includes Greywolf Capital Management, Silver Point Capital, Black Diamond Offshore Ltd. and Manchester Securities Corp.
The agreement for the bid came the day before Fridays auction for Delphis assets and one week before Delphis hearing to exit bankruptcy.
In Platinum Equitys bid, it would pay $250 million for most of Delphis operations, and GM would buy Delphis global steering operations and four U.S. plants. The Platinum-owned operations would get a financing package valued at $3.6 billion, provided by undisclosed sources that include GM.
Delphi, based in suburban Detroit, has been mired in bankruptcy since October 2005. A plan to emerge from protection collapsed in April 2008.
The supplier ranks No. 7 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $18.06 billion in 2008.
Reuters contributed to this report