Delphi Ipo | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘delphi ipo’

Delphi Files for IPO

Once-bankrupt supplier hoping to raise millions, possibly billions, through stock offering.

by on May.31, 2011

Delphi CEO Rodney O'Neal prepares to take the supplier public again.

Delphi Corp., which endured the longest corporate bankruptcy in U.S. history, has filed with the Securities Exchange Commission asking for permission to sell shares through an initial public offering that plays up the company’s potential for growth in China and other overseas markets.

Delphi filed for bankruptcy in 2005 in a bid to scrap what it described as an unsustainable business model that included a heavy reliance on its former parent, General Motors, and a large manufacturing base in the United States. The bankruptcy wiped up Delphi’s old shareholders and left the company’s salaried pension fund in the hands of the Pension Benefit Guarantee Corp.

The Troy-based automotive supplier spent four years under Chapter 11 protection before emerging from bankruptcy in October 2009 with a much smaller manufacturing presence in the U.S. and a focus on supplying high-tech componentry, including safety equipment, fuel-management and electronics.

News Now!

The new Delphi is now counting on growth in the automotive market in the next few years to impress would be investors.

Global vehicle production is forecast to grow at a compound annual growth rate of 6.8% from 2010 to 2015. In the near-term, the mature markets, including North America and Western Europe, are expected to grow at 3.3%, from 2010 to 2015, for an increase of approximately 6.9 million units, while the emerging markets are forecast to grow at 10.3%, during the same period, for an increase of approximately 22.2 million units.

(more…)

GM Selling Off Delphi Stake

Federal pension fund also selling off stake, leaving hedge funds in control.

by on Mar.31, 2011

Delphi CEO Rodney O'Neal.

Putting further distance between it and its one-time parts subsidiary, General Motors will sell off its stake in the massive automotive supplier Delphi.

The $3.8 billion deal will be paired with the sell-off of the stake in Delphi held by the federal Pension Benefit Guarantee Corp.  Both GM and the PBGC received their shares in the supplier following its emergence from bankruptcy protection in mid-2009.

Those moves will leave control of Delphi Automotive in the hands of the hedge funds that also took a stake in the supplier as it wrapped up what was the longest run through Chapter 11 in U.S. industrial history.

The decision to sell off its Delphi holdings comes just weeks after GM also generated $1.0 billion through the sale of its preferred holdings in Ally Financial, the lender once known as GMAC.  The Ally transaction will generate a one-time gain of $300 million, while GM will book a $1.6 billion profit from the sale of its Delphi shares.

Subscribe for Free!

“We are systematically delivering on our commitment to strengthen and simplify our balance sheet,” said Dan Ammann, GM senior vice president and chief financial officer as of April 1.

Officially known as Class A Membership, GM took its stake in the supplier as part of the complex financial package that helped Delphi finally get back to business after it voluntarily plunged itself into bankruptcy in 2005.

(more…)