The two largest shareholders in Delphi are preparing a restructuring package for the bankrupt US car parts maker in an attempt to speed its exit from Chapter 11.
Appaloosa Management and Harbinger Capital Partners, two hedge funds which between them hold 14 per cent of Delphi’s shares, have hired UBS and Merrill Lynch as advisers and given them first refusal to lead any rights issue or debt funding.
An acceleration of the Delphi bankruptcy process would be welcomed by General Motors, the carmaker that is Delphi’s biggest customer.
Credit rating agencies and Wall Street analysts say problems with Delphi’s bankruptcy, which GM estimates will cost it $5.5bn-$12bn, remain the biggest threat to the carmaker.
