According to the U.S. bankruptcy court documents, a hearing that will help Delphi get out of the bankruptcy protection process will be held on July 23. Whoever Delphi ultimately owns will be announced on this day.

Earlier this month, Delphi said it had reached an agreement with Platinum Equity, a private equity company, for the sale of its global production line.

The agreement was jointly funded by General Motors and Platinum Capital with a total of US$3.6 billion to take over Delphi, of which GM contributed a total of US$2.5 billion. This can also be seen as a way that Delphi once again decided to get involved in Delphi since GM's dismantling from GM in 1999, but the agreement stipulates that Platinum Capital will be responsible for the acquisition and all future operations and management of Delphi.

However, the above plans have undergone substantial changes on June 10. US Courtruptcy Court Judge Robert Drain believes that Delphi must open bid information to other investors and hold auctions instead of being taken over by Platinum Capital in a default manner. At the same time, Delphi’s official committee of unsecured creditors submitted a statement of opposition to the sale of Delphi’s Platinum Capital Plan on June 17 North American time. But on June 19, North American time, General Motors issued a statement saying that the bankruptcy court's decision did not dispel the GM's regaining of Delphi's attitude: "The open sale of Delphi does not mean that General Motors will disregard GM. Instead, General Motors will still give Delphi an opportunity. The bankruptcy case provides a comprehensive agreement, retaining a strong team to lead Delphi and supporting its business development plan.” It is reported that Delphi has been a major supplier of key components for General Motors. GM is planning to enter Delphi again, mainly to run. Delphi's five component factories. In this way, the key component supply chain will not be subject to others.

According to the court documents of this week 2, if there are other bidders, the auction will be held on July 17. Drain’s final deadline for bidding is July 10th. Delphi’s investors who are interested in Delphi’s will be free to bid. GM’s and bankruptcy courts will also evaluate these tenders and take them out of bankruptcy protection through acquisition procedures. program. Bankruptcy court documents show that the hearing on July 23 may be through a sale plan with Platinum Capital, and if there are other bidders, it may become a sales hearing.

This is also the last chance for Delphi to leave the bankruptcy protection process. Delphi has been relying on the funds provided by the DIP lenders to maintain production since the contractual abortion with the investor. According to Chapter 11 of the Bankruptcy Law of the United States, companies that enter bankruptcy protection procedures but still retain ownership of their assets are called Debtor in Possession, and Delphi maintains production through DIP funds (DIP Financing). On June 17, the bankruptcy court also agreed that GM provided $250 million in financial assistance for Delphi to help Delphi maintain production until Delphi was able to walk out of the bankruptcy protection process. However, Delphi’s current situation is that it has not been able to raise enough funds to help it complete the restructuring and get out of bankruptcy protection. The collapse of the financial market and the drastic decrease in car demand have additionally worsened Delphi’s situation.

It is not yet clear whether there are other companies bidding for Delphi, but Platinum Capital stated in a report on the evening of June 23, North America, that it is not the only bidder, and has learned a few weeks ago about other potentials. The bidder. According to the New York Post, Delphi’s DIP lenders are investigating Delphi’s bid and claim that Deloitte’s hedge fund company Elliott Associates will be the DIP lender under Deloitte’s DIP system. The most favorable contender. The billionaire investor Carl Icahn also tends to bid for Delphi.

In addition to these US investors willing to fully accept Delphi, Jingxi Heavy Industries, a not-so-familiar company, had used $100 million to acquire Delphi’s global automotive suspension and brake R&D production system at the end of March this year. On the 31st, Delphi signed a subscription agreement. The bankruptcy court of the Southern District of New York approved the bid application process on April 23, and the final offer of BWI was 90 million US dollars. The bankruptcy court stated that if no one offered a bid of 90 million U.S. dollars before the May 15 auction date, BWI would receive assets such as the Delphi global automotive suspension and brake R&D production system.

The First Financial Daily reported on June 19 that the transaction was not approved because the quotation plan failed to meet the shareholders' requirements. The author found overseas news did not search for the relevant certain information, can not determine whether the transaction is finally stranded. However, no matter what, the new round of bids is still open to Chinese companies, and the second overall acquisition of Delphi has already arrived.

Except Jingxi Heavy Industry, according to the report of the 21st Century Economic News on March 18th (that is, before Jingxi Heavy Industry and Delphi sign the subscription agreement): A merger team led by the Beijing Municipal Government has officially contacted Delphi and is preparing to peel off Delphi. Non-core business: including brakes, suspensions, etc. Its purpose is to transplant Delphi into Beijing in the short term and change the hollowing out of Beijing. Beijing also hopes to acquire Delphi to promote the upgrading and development of the Beijing auto parts industry. According to reports in the newspaper, some Beijing-funded parts and components companies such as BAIC Beijing, Hainachuan Beijing, and Tianbao Group all participated in the negotiations. If the conditions are right, it does not rule out the possibility of an overall acquisition of Delphi.

Since then, due to an agreement between BWI and Delphi, there has been no further progress in this matter. It can be imagined that the news of the overall sale of Delphi will surely attract the attention of BAIC, because FAW, SAIC, and Dongfeng all have their own main parts and components systems in the parts and components industry chain, and they have world-class technology rights like Delphi. The parts and components companies are exactly what Beiqi needs. According to the relevant documents of the current automobile revitalization plan, the state has focused on supporting large-scale industrial clusters and economies, and the pursuit of large-scale industrial targets through mergers and acquisitions of Delphi is the pursuit of BAIC. Then, in the overall bid for Delphi, BAIC first May stand by.

Background data interpretation:

About the history of Delphi:

Delphi is an auto parts manufacturer that was split from General Motors in 1999 and entered bankruptcy protection in 2005. Afterwards, it received funding of 2.55 billion U.S. dollars from multiple investors, but the investment plan announced abortion in April 2008 due to the withdrawal of investors. Delphi repeatedly put forward a plan for reorganization in an attempt to break away from the bankruptcy protection procedure, but was abandoned due to the deep impact of the financial crisis and the drastic drop in the automotive market demand. Now, with GM being out of bankruptcy protection and the Obama administration’s support for parts and components companies in mid-July, Delphi’s departure from bankruptcy protection has turned a turn for the better.

About BWI's acquisition of Delphi's global automotive suspension and braking program:

Delphi has signed a subscription agreement with Beijing Jingxi Heavy Industry on March 31st. On the same day, Delphi agreed to sell its global brake and suspension components business to China Jingxi Heavy Industry. According to a report in the local newspaper of Detroit today, Beijing Jingxi Heavy Industry will pay Delphi Company 100 million U.S. dollars in cash to acquire its assets. The current business to be acquired has approximately 3,000 employees in Poland, China, Mexico, France and the United States. The acquisition must take effect with the consent of the Southern Bank of New York Bankruptcy Court. Delphi has filed an application with the court and the bankruptcy court will hold hearings on April 23 and May 21 respectively to discuss the consideration of China Jingxi China's acquisition of Delphi's global brake and suspension components business.

The final acquisition will also require the court's permission and other transaction conditions. Delphi Company unilaterally hopes that the acquisition plan for Chinese companies can be completed in the fourth quarter of this year. Pursuant to the acquisition agreement, BWI will acquire Delphi machinery and equipment, intellectual property and real estate. The customer contract signed with the plan has been signed, and the supplier contract has also been transferred to Jingxi Heavy Industry.

About Beijing West Heavy Industries:

The official website of the Beijing Fangshan District People's Government Office on March 30 showed that “Beijing Jingxi Heavy Industry Co., Ltd.” was formally incorporated. The company plans to introduce the core technology of the Delphi suspension and brake system in the United States and will establish a high-end auto parts industrial base in Doudian. This project is a key project with the largest amount of investment and the highest technological content in the history of industrial development in our district.

BWI is jointly funded by Beijing Fangshan State-owned Assets Management Co., Ltd., Shougang Corporation, and Baoan Investment Development Co., Ltd. The registered capital of the company is 800 million yuan. Of which: Shougang Corporation invested 408 million yuan, accounting for 51% of the total capital, regional asset management company invested 200 million yuan, accounting for 25% of the total share capital, Baoan Investment Development Co., Ltd. invested 192 million yuan, accounting for 24% of the total share capital.

About Beiqi United Private Enterprises' Acquisition of Delphi:

BAIC and the Hainachuan Coalition include private parts and components companies, such as the Tianbao Group, located in Beijing. Its main purpose is to transplant Delphi into Beijing. The acquisition method may be: With the Beijing Municipal Government taking the lead, the companies will jointly purchase Delphi, and then each company will purchase assets such as brakes and suspensions, and then transplant them to Beijing for production.

About Beijing Hainachuan:

On August 26, 2008, Beijing Auto Holding and Beijing State-Owned Assets Management Co., Ltd. signed a framework agreement for the establishment of Beijing Hainachuan Auto Parts Co., Ltd. The capital invested by the two parties totaled RMB 1 billion. Among them, Beiqi Holding invested approximately RMB 600 million in equity and other assets of its high-quality parts and components companies, and Beijing State-owned Assets and Capital Corporation invested in cash of RMB 400 million. Beijing Hainachuan is positioned as a unified planning and development platform for the Beijing auto parts industry.