Delphi Exits Bankruptcy as Shell of Former Self

The former parts maker Delphi Corp. exits bankruptcy as Delphi Holdings LLP — a comparatively leaner, more-focused and globally competitive company.

The new Delphi's portfolio will center on electronics and safety; powertrain; thermal; electrical and electronic systems; OE service and the aftermarket.

What's left of Delphi mainly resides now overseas, and its executive chairman, Robert “Steve” Miller, who agitated the United Auto Workers by saying he couldn't pay $65 an hour for someone to mow lawns, leaves the company.

“We expect that the industry and the competitive environment will continue to be demanding, but the restructuring we have already completed creates a strong platform,” says Rodney O'Neal, president and CEO. “We are excited about the potential for our future.”

The completion of its Chapter 11 case was largely made possible through its former parent General Motors Co., which bought back several underperforming assets crucial to GM's survival.

Delphi's bumpy 4-year trip through Chapter 11 contrasts against the 39-day, “quick-rinse” bankruptcy at GM and the 41-day stay for Chrysler Group LLC earlier this year. Laura Bartell, a professor of law at Wayne State University in Detroit, says Delphi took advantage of the law.

“They did what they needed to do,” Bartell says. “They shed employees; they shed shareholders; they shed debt; they sold bad assets and will liquidate others.”

The new Delphi is a privately held company. Leading the acquisition were Elliott Management Corp. and Silverpoint Capital LP, the senior creditors.

The company shrinks from 41 facilities in the U.S. three years ago to four — Brookhaven, MS; Clinton, MS; Vandalia, OH; and Warren, OH. Three of the plants produce wiring systems, while Vandalia supplies doors, dashboards and climate systems.