Delphi Could Soon Emerge From Bankruptcy

The auto parts maker, which has been in bankruptcy for the past four years, may at last emerge from Chapter 11 and avert liquidation, a report says.
Author:
Publish date:

Auto parts maker

Delphi Corp.

, which has been in bankruptcy for the last four years, may finally emerge from Chapter 11 and avert liquidation, the

New York Times

reports.

The Obama administration's auto task force is pushing for a sale of at least some Delphi assets to a third-party buyer, the

Times

reports, citing people briefed on the matter. The assets could be sold to another parts supplier or an investment firm.

General Motors

(GM) - Get Report

, which is nearing its own bankruptcy filing, was once the parent company of Delphi. Still a major Delphi customer, GM might reacquire some assets as well, the newspaper reports.

GM has agreed to take back five Delphi plants as part of its reorganization, the

Times

notes, although the terms of that deal haven't been settled.

The talks are continuing and still could break down, the people said. But one of these people said that an agreement might be struck during the weekend, the

Times

reports.