Delphi Purchased by Platinum Equity
Published: June 1st, 2009
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The Detroit Free Press is reporting that GM supplier Delphi will emerge from its three-year bankruptcy by selling itself to L.A.-based private equity firm Platinum Equity, for $3.6 billion. The bad news? Delphi will terminate its salaried pension plan, which covers 20,000 workers and retirees.The Pension Benefit Guaranty Corp will take over Delphi’s pensions, a move which will “cap the annual payments to $54,000 a year for salaried retirees age 65 years or older.” Delphi’s hourly retirement fund “will be addressed by GM.” Or not. Whichever.
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So what took so long? Was Delphi holding out for more GM bucks?
@ Buickman, Seriously? Despite all of the evidence we discuss day in and day out on this site of stupidity, greed, and stubbornness on the part of management, workers, and consumers you still feel this to be a result of the Jewish invisible hand? Although, the idea that anyone would pay money for Delphi does have me reaching for my tinfoil hat.
The taxpayer will pay for the UAW retirement. Is Platinum Equity politcally conected and in some way using taxpayer money to fund this pig? Else they are stupid.
Is this another bankruptcy where the taxpayers get the "bad" parts(pensions, healthcare, crap facilities) and Platinum Equity gets to walk away with the part of Delphi that probably turns a profit. All in the name of saving the "too big to fail" GM and some UAW jobs. I love the thought of knowing when it comes time for me to retire I wont be able to retire because I will have been taxed(and inflated) to death paying for their "platinum" retirement.