Delphi Defends Proposed Sale to Platinum

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Bankrupt auto parts maker Delphi Corp. is defending its proposed sale to Beverly Hills-based private equity firm Platinum Equity, saying claims that the transaction was a sweetheart deal were unfounded.

In a Thursday filing with the U.S. Bankruptcy Court in Manhattan, Delphi Chief Financial Officer John Sheehan fired back at criticism from Delphi’s creditors, who say the $3.6-billion deal between the two companies had been covertly brokered. The deal has the backing of the U.S. government and General Motors Corp., which is Delphi’s largest customer.

The creditors, who are owed more than $3.25 billion, contend that the company never seriously pursued other offers that may have led to a higher bid.



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