DETROIT — Delphi Corp. is preparing to emerge from four years of bankruptcy as a major North American producer of automotive electrical parts.
Delphi expects to sell many of its assets to the private equity fund Platinum Equity, under its plan to leave Chapter 11. Delphi's product portfolio could fit with the electrical components business that Alcoa Inc. in late April said it would sell to Platinum.
Platinum affiliate Parnassus Holdings II LLC will run Delphi's global businesses with $3.6 billion in capital and capital commitments, including $250 million from General Motors, Delphi said in a statement.
But The Wall Street Journal, citing an unidentified source, said GM will provide more than $2.5 billion of the $3.6 billion. Under terms of the transaction, Platinum is expected to invest no more than $750 million, and GM would provide the balance in financing, the newspaper said.
GM and Delphi spokesmen declined to comment.
GM, which spun off Delphi in 1999, agreed to buy Delphi plants in Kokomo, Ind.; Wyoming, Mich.; and Lockport and Rochester, N.Y., Delphi said.
Delphi said a hearing in U.S. Bankruptcy Court in New York to approve the plan is scheduled for July 23.
CEO Rodney O'Neal and his team will retain their posts, spokesman Lindsey Williams said.