General Motors lends another $300 million to Delphi

Brian White — Mon, 11 Aug 2008 11:26:00 EST

Filed under: Bad News, General Motors (GM)

General Motors Corp. (NYSE: GM) is giving out another chunk of cash to its ailing and bankrupt parts vendor Delphi Corp. (OTC: DPHIQ). To exit bankruptcy status, Delphi said GM would increase its loan to $950 million from $650 million so that the auto parts supplier could maintain minimal liquidity.

Delphi, which almost had a savior in July when hedge fund Appaloosa Management LP was about to inject over $2.5 billion to assist it in reorganizing itself for a speedier exit from bankruptcy, is now suing the hedge fund for backing away from its earlier plan. When Appaloosa saw that the downturn in the U.S. auto market was here to stay, it closed its checkbook. But does that mean Delphi can sue it for changing its mind? It appears so.

With GM's recent $15.5 billion quarterly loss, it's becoming harder and harder to see how the American auto giant is going to survive as is. The loss just reported a few weeks ago was the third-largest ever in the history of the company, and $2.8 billion of that was tied to its joined-at-the-hip partnership with Delphi. Yet, there appears to be no ready alternative for supply parts for GM that is instantly usable. Delphi, which entered bankruptcy protection in October 2005, is now trying to emerge from that state almost three years later. GM still has no other partner for the majority of its parts. What else can go wrong for GM? Right now, just about everything.

General Motors lends another $300 million to Delphi originally appeared on BloggingStocks on Mon, 11 Aug 2008 11:26:00 EST. Please see our terms for use of feeds.

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Newspaper wrap-up: Lehman CEO may look to take company private

Laurie Pasternack — Tue, 15 Jul 2008 08:00:00 EST

Filed under: Newspapers, Magazines, Google (GOOG), Viacom (VIA), Amer Intl Group (AIG), Lehman Br Holdings (LEH)

MAJOR PAPERS:

The market for private mortgage insurance has narrowed and is tougher to obtain, further pressuring home buyers and affecting the market, the Wall Street Journal reported. "Clearly, the pendulum had swung a little too far in terms of flexibility in underwriting," said Len Sweeney, the chief risk officer at AIG United Guaranty, a part of American International Group Inc (NYSE: AIG).
In a agreement with Viacom Inc (NYSE: VIA), Google Inc (NASDAQ: GOOG) said it will remove visitor data from YouTube before it fulfills a judge's order to send data to Viacom, as a part of a larger copyright lawsuit, the Wall Street Journal reported.

OTHER PAPERS:

As part of its effort to emerge from bankruptcy protection, the Detroit News reported that Delphi Corp (OTC: DPHIQ) announced plans to sell its brake business. Delphi has retained W.Y. Campbell and Co to help sell the unit, which has around 1,000 employees worldwide.
The New York Post learned that Dick Fuld, the CEO of Lehman Brothers Holdings Inc (NYSE: LEH), is seriously considering ways to take the company private. The Post said that talks centering on the privatization of Lehman have "gotten very serious consideration," according to sources, although details on how a maneuver may work remain unclear.

Newspaper wrap-up: Lehman CEO may look to take company private originally appeared on BloggingStocks on Tue, 15 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

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