Judge: Delphi Sale Can't Be Private

Bankruptcy judge says deal with a private equity firm should be done through public sale to make sure auto supplier and its lenders get best deal possible.

NEW YORK (AP) -- A bankruptcy judge says the proposed deal between Delphi and a private equity firm shouldn't be conducted as a private sale.

U.S. Judge Robert Drain says the deal should be done through a public sale to make sure the Troy, Mich.-based auto supplier and its lenders get the best deal possible.

Delphi says a private sale is needed given the hundreds of hours put into the deal's negotiations and General Motors Corp.'s involvement.

Delphi reached a deal earlier this month to sell the bulk of the company to an affiliate of Platinum Equity. GM will pay $2 billion to help finance the deal.

But several of Delphi's secured lenders say they also should be allowed to submit bids and know the details of the offer they would be competing against.

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