Bailout Watch 543: Delphi Emerges From C11
Bankrupt parts maker Delphi is set to finally leave bankruptcy, thanks to a little help from American taxpayers (who else?). OK, sure, technically, only a small fraction of Delphi’s just announced $3.6 billion dollar rescue pack will come from the federally funded “new” GM. We’re talking table scraps, at $250 million. Mind you, this cool quarter billion doesn’t include GM’s forthcoming purchase of five– count ’em five Delphi plants– at an undisclosed price. And if past history is a guide, well, let’s not forget that GM has taken more than $11 billion in charges against Delphi since they spun-off their money-losing division. As Automotive News [sub] reports, we don’t know how much Platinum Equity is paying to buy Delphi’s worldwide ops, or how much of the manufacturer they’ll actually own (i.e. how much we own). Although Bloomberg seized on Delphi’s exit strategy as sign that the auto industry has turned a corner, it’s probably more of a sign that the strip and flippers—cough Cerberus cough—-know a sucker when they see one.