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Money & Company

Delphi fires back at critics over Platinum Equity buyout

By W.J. Hennigan
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Bankrupt auto parts maker Delphi Corp. and its potential buyer, Beverly Hills-based private equity firm Platinum Equity, filed a history of their business dealings today in Manhattan federal Bankruptcy Court.

The filing is an attempt to clear the air about criticisms that the potential deal between the two had been covertly brokered. Delphi’s creditors have attempted to thwart Platinum’s proposed $3.6-billion acquisition of Delphi, calling it a “sweetheart deal.”

In the filing, John Sheehan, Delphi’s vice president and chief financial officer, gave a three-year chronology outlining Platinum’s involvement with his company.

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His affidavit details discussions with the U.S. government and traces Delphi’s failing finances and need for capital, which creditors were unwilling to provide.

Today’s filing also includes a reimbursement order, under which Delphi would pay Platinum $30 million for due-diligence costs.

-- W.J. Hennigan

Money & Company
W.J. Hennigan

W.J. Hennigan covered the Pentagon and national security issues from Washington, D.C., before leaving the Los Angeles Times bureau in November 2017. While there, he reported on war, counter-terrorism, and the lives of American service members from more than two dozen countries and previously covered the aerospace and defense industry from Los Angeles. Hennigan earned awards from the National Press Club, the Gerald R. Ford Presidential Foundation, and was a contributor to the Los Angeles Times coverage of the terror attacks in San Bernardino that won a Pulitzer Prize in 2016.

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