Delphi Can Use GM's Money, But…
According to The Detroit News, the bankruptcy judge controlling Delphi's fate has OK'ed GM's $2.83b loan to its former GM parts division and current bankrupt. Delphi's other investors (save one) had protested the loan, saying the plan was "a brazen attempt to ignore a portion of the contract" and gave GM too much control of its former subsidiary. The judge overruled the protest. He green-lighted the Delphi cash conflagration– as long as The General [s]laundered the cash[/s] made the payments through "a fully-owned subsidiary" (providing GM has any left). This stricture would meet the letter of the existing contract by keeping GM's name off the loan paperwork. GM said the ruling was "encouraging," but it's still "studying it." Delphi said the ruling will allow them to emerge from bankruptcy by April fifth, as they had originally planned. Although the ruling will ensure GM's largest parts provider keeps providing parts, GM's liquidity is looking increasing threatened.
How dare those annoying creditors get in the way of business-as-usual at GM.
Why does this sounds amazingly like one of those Nigerian "I need to borrow your checking account for a few days" scam?