Investor Firm to Tap GM's Fresh Billions to Buy Delphi

Investor Firm to Tap GM's Fresh Billions to Buy Delphi

online.wsj.com

Flush with $30 billion in new capital from the U.S. government, General Motors Corp. has agreed to finance a private-equity firm's buyout of bankrupt auto-parts company Delphi Corp.

GM will provide more than $2.5 billion of the $3.6 billion necessary for Beverly Hills-based buyout firm Platinum Equity to gain control of Delphi, according to a person familiar with the matter.

(visit the link for the full news article)


Related News Links:
blogs.wsj.com
www.marketwatch.com

Unbelievable! The tax-paying pubic provides billions of dollars to GM along with illegally rearranging the bankruptcy rules to make sure secured bondholders get the least money and auto unions become owners, but that's not bad enough:

Bankrupt GM provides $2.5 billion to a private equity firm to buy a bankrupt auto parts company: Delphi. This can't be happening! Is there no oversight whatsever over this money?

"Among other things, GM will provide a capital investment and back-up financing to a new company formed by Platinum Equity to provide a $250 million credit facility to Delphi."
more details about the arrangements from the marketwatch article

online.wsj.com
(visit the link for the full news article)

reply to post by earlywatcher



I totally agree with you and this is an outrage! We already know that there has been no oversight since all this bailout rubbish started. It is a shame because generations in the future are going to be bound by these financial decisions that border lunacy. We can ask questions all we want about what our government is doing with our heard earned money and we will always get a deaf ear from our legislative branch and executive branch. This is clearly a railroad job and they are intent on running this thing we have into the ground.

This is a real abuse of power at the hands of the federal government. I thought it was a crime for the misuse of government funds? I guess they just bend that safeguard as well when they feel its convenient. I really have no answers or solutions to address these problems. Maybe some of you have some ideas?


[edit on 9-6-2009 by Jakes51]

reply to post by earlywatcher


The scams just keep on comming. IT really makes you wonder if all these companies were on the verge of bankruptcy,or if it was just a ploy to bilk the taxpayers once again. In his last four years Bush might have been an idiot. But this new guy has a plan,nationalization of everything. I guess thats where the saying comes from. Obama-nation.

What is not under gov.control now?

Anyone want to bet that somehow this "Private Equity Firm" is related to ACORN or some other financial/political supporter of Obama? Chicago politics at its best.

This is the same thing that was done with AIG and the funneling of money through them to foreign banks.

Crazy.

reply to post by grapesofraft


that's an excellent point. i'm going to see what i can uncover in that regard. there has got to be some buddy buddy stuff going on here.

reply to post by David9176


EXACTLY! billions were funneled through AIG to foreign banks. I guess that since they got away with that, they figured why not do it again. the problem is, with gov gone wild with corruption, how do we make this stop?!!