Posted on 06/09/2009 2:52:40 PM PDT by La Lydia
General Motors (GM) has agreed to finance private equity firm Platinum Equity’s buyout of Delphi Corp. GM will provide more than $2 billion to Platinum Equity for purchasing most of the assets of Delphi.Troy, Michigan-based Delphi, which has been operating under ban kruptcy protection, is a former GM subsidiary and the auto-maker’s largest supplier. Under the deal, Platinum Equity will acquire most of Delphi's global operations, including its Troy headquarters.
GM is also acquiring some troubled assets of Delphi. Further, the company is providing $250 million to help Delphi emerge from bankruptcy protection....
(Excerpt) Read more at automotive-business-review.com ...
http://www.labusinessjournal.com/article.asp?aID=63207059.3064181.1792076.7176286.5664557.210&aID2=137843
in which a Beverly Hills equity firm makes out like a bandit. "With one bold stroke, L.A. billionaire Tom Gores made himself an auto industry player last week with the purchase of bankrupt GM parts supplier Delphi Corp.’s major assets....."
Wow. If I’d known GM would pay for it, I would have bid to buy Delphi.
If any of us would have known.....wait, do you smell something funny in here? Or is it just my imagination?
No nothing smells funny....just Chicago politics as usual.
As a taxpayer, I'm part owner of this once-proud company.
It's funny, I don't remember getting a phone call or memo asking me for my vote on this.....huh....
...the taxpayers weren't....duped....on this, were we?
Are we still digging or are we over the hump and filling in?
Amazing that a bankrupt company is buying Delphi. Wonder what we taxpayers get out of this?
Our tax dollars at work. An investor gives obama a generous “donation” for his campaign. Not officially “in return” but only a few months later and one week after the donor bought a bankrup company, obama gives this investor a generous donation from the treasury. Nothing to see here, no need for a media investigation. It’s not like they have “fake but accurate” documents as evidence; nothing but the public record provides any proof of this scandal. Still, it sure does look like that initial investment paid off.
A failed company to buy out another failed company?
You have to wonder if it was up for bid, or just how this came about. Did Tom Gores just call up GM and ask for the $2 billion? Or did GM call up Tom Gores and offer it? Did anyone else have a chance? Wasn’t Delphi in bankruptcy, or am I mistaken?
They all fall under the UAW contract don’t they. Doesn’t it stand to reason that they would want to protect all those workers as well? Remember who has a major stake in the “New GM”.
You have got to be kidding me!
Just as upChuck Schumer was directed to start the first domino falling in the banking failures, Obowma’s car czar has been directing closing GM and Chrysler dealerships to push the commercial real estate dominos over, so the real estate crisis will not ease and the nation recover from the recession too soon for the affirmative action figure fraud-in-chief and his Marxist czars to finish their destruction of the nation’s economic system. Never let a crisis go to waste don’tchaknow.
if a private equity firm buys a bankrupt subsidiary from a government-bailout firm, with borrowed funds funded by that same government-bailout taxpayer/union/czar-owned firm, does that make the private equity firm subject to open books and gubment salary control under this new regime?
and what happens to the ‘toxic assets’ of Delphi? I’m guessing they’re passed on to it’s creditors left holding the bag, which are, naturally, in turn, passed on to the taxpayer in the form of higher prices, on top of the cost to the taxpayer of the bankruptcies to begin with?
so we’re burned both ways thru the door, eh? who’s profiting here?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.