A day after Platinum Equity issued a statement saying it wants an "open and competitive process" for its planned purchase of bankrupt auto parts maker Delphi Corp., reports suggest that other suitors could make bids.
The New York Post reported Thursday that Delphi's debtor-in-possession lenders may offer to buy the company. In particular, the newspaper cited Elliott Associates, a hedge fund with $2.9 billion in loans to Delphi, as potentially the lead challenger to Platinum.
The paper also said that despite last week's rumors that billionaire Carl Icahn would make a bid, that now appears unlikely.
Based in Beverly Hills, Platinum already has a signed agreement to purchase most of Delphi's assets. But on Wednesday, a bankruptcy court judge in New York instructed Delphi to ensure that other bidders were considered before Delphi sells its assets.
"Although we have an executed agreement in place, Platinum Equity fully supports maintaining what has always been an open and competitive process," according to a statement from the company. "We have never been the only prospective bidder in the process, nor even necessarily the favored bidder. As that process reaches culmination, we are confident that our offer will be validated as the highest and best."
Platinum is the investment firm of Tom Gores, a billionaire who developed a system of buying troubled companies and turning them around.
Delphi entered Chapter 11 bankruptcy in 2005. The bankruptcy could end soon after a final court hearing scheduled for July 23 in New York.
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