will help finance Platinum Equity's buyout of bankrupt auto-parts company
, a report says.
GM will provide more than $2.5 billion of the $3.6 billion necessary for the private-equity firm to gain control of Delphi, the
Wall Street Journal
reports, citing a person familiar with the matter.
Under the terms of the deal, Platinum is expected to invest no more than $750 million, while GM, which received about $30 billion in debtor-in-possession financing from the U.S. government, would provide the balance in financing, the newspaper reports.
The terms of the GM loans couldn't be learned.
As part of the deal, GM is buying back four Delphi plants and a global steering division. GM also is providing a $250 million loan to fund Delphi's operations while the auto-parts company remains in Chapter 11, according to the
Delphi said it reached an agreement June 1 to emerge from bankruptcy after about four years, the same day GM, its former parent company, filed for bankruptcy court protection. The Platinum deal must still be approved by the bankruptcy court. GM has said that if the company doesn't get that support, it will try to complete the transaction through a sales process under the U.S. Bankruptcy Code, the
A GM spokeswoman wouldn't comment on specific figures of the deal but noted in a statement that funding for the Delphi buyout was "incorporated into GM's revised viability plan," the