Updated: U.S. Bankruptcy Judge Robert Drain approved Dephi's sale to a creditor's group at a July 30 hearing.Under the deal, Delphi will pay Platinum $30.5 million as reimbursement for expenses incurred.

Platinum Equity has lost in its bid to acquire bankrupt auto parts supplier Delphi Corp., which is set to be awarded to creditors under a plan accepted late Monday.

Under the deal, debtor-in-possession lenders, including hedge funds Silver Point Capital and Elliott Management Corp., would forgive more than $3.4 billion they are owed by Delphi in exchange for ownership of the company. The deal paves the way for Delphi to emerge from bankruptcy after almost four years.

Platinum, a Beverly Hills private equity firm founded by L.A. billionaire Tom Gores, had reached an agreement in early June to acquire some of Delphi's assets. As part of a $3.6 billion bid, former Delphi parent General Motors Co. would have purchased Delphi's steering business and four U.S. plants, with the remaining assets going to Platinum.

Creditors lobbied against the government-brokered plan, arguing that the deal would unfairly cost them $2 billion in debtor-in-possession financing, and convinced Drain to reopen the bidding process.

No additional bidders stepped up before the July 10 deadline; however, the creditors were given additional time to prepare an offer. Platinum, GM and the creditors reportedly tried to arrange a deal that would involve all three parties but were unable to reach an agreement.

Platinum is still hopeful that it can be involved in the transaction in some manner. Though it did not specify how it might be involved, in a statement the firm said, "We look forward to working on the next phase of this process with Delphi, its lenders and General Motors all of whom have acknowledged the value of Platinum Equity's operating expertise."

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