(autoinsidernews) - Bankrupt auto parts supplier Delphi announced that it has accepted a $3.4 billion investment from a group of private equity companies to help fund its emergence from bankruptcy protection. Delphi also said that its replaced CEO Robert S. (Steve) Miller with President Rodney O'Neal, effective Jan. 1. Miller will remain Chairman, and O'Neal will remain president, reports Trend.
Under the financing deal, Appaloosa Management LP, Cerberus Capital Management LP, Harbringer Capital Partners Master Fund I, Merrill Lynch and UBS Securities will invest at least $1.4 billion (and up to $3.4 billion) in exchange for common and preferred stock, which is part of an offering of 135 million new shares to be issued in the first half of 2007. The money will be used to fully fund Delphi's pension plan.
The agreement is part of Delphi's plan to emerge from bankruptcy protection by the second quarter of 2007.