GM says Delphi bankruptcy deal still possible

General Motors said today that Delphi Corp., its biggest auto parts supplier, had "ample solutions" to emerge from bankruptcy, even if the co-leader of a proposed $3.4 billion investment quit plans to support it.

Asked if the likely withdrawal of Cerberus Capital Management LP from a group of investors backing Delphi would jeopardize a deal to bring Delphi out of bankruptcy, GM CEO Rick Wagoner said there should be other opportunities.

"I don't think it necessarily complicates things. I think there's still ample solutions," Wagoner said at a briefing in China. "I don't think that given the state of availability of private capital in the U.S. today that getting other investors interested is per se a problem. But it is going to be up to the Delphi board to decide how they want to handle that."

Delphi has said it expects Cerberus to withdraw from the proposed investment aimed at bringing the parts maker out of its 2005 bankruptcy after differences emerged over the future value of a reorganized company.

Delphi has said it would talk to creditors and other members of the investor group, and may consider adding investors.

The investment plan, approved by the U.S. Bankruptcy Court in January, is contingent on Delphi reaching agreements with its unions and former parent GM that satisfy investors.

Delphi has said the other planned investors, including Appaloosa Management LP, are expected to continue as investors.

Cerberus had pledged to invest up to $1.7 billion, with the other half coming from the rest of the group.

Delphi's 2005 bankruptcy filing was partly due to production cuts at U.S. automakers and high wage and benefit costs inherited in its 1999 spin-off from GM.

On Thursday, Delphi said anticipated changes in investors were not expected to stop it from filing a reorganization plan by July 31, or emerging from bankruptcy by the end of 2007.