NEW YORK (AP) -- Auto parts maker Delphi Corp. says its creditors won out over a California private-equity firm in an auction for the company's assets as it moves to emerge from bankruptcy protection.
Troy, Mich.-based Delphi said Monday that creditors led by JPMorgan Chase Bank had the successful bid. The lenders submitted a credit bid, which would involve them forgiving the combined $3.45 billion in debt owed them by Delphi.
The deal is backed by General Motors Co. Delphi was a GM parts subsidiary until it was spun off as an independent supplier in 1999. The interests of the two companies remained intertwined because of GM's dependence on parts from Delphi and Delphi's need for financing.
Delphi said that a deal announced in June with an affiliate of Beverly Hills, Calif.-based Platinum Equity is now considered the "alternate transaction" behind the deal with the creditors.
It said the deal with the creditors has a similar structure to the one struck in June with Platinum, under which Platinum would have acquired the right to operate most of Delphi's businesses with the help of billions of dollars in aid from GM.
In exchange, GM would get certain parts of Delphi, including its Saginaw, Mich.-based steering business, and much needed assurance of a steady supply of the parts it needs to produce its cars and trucks. Other "noncore" plants and assets would be sold off over time.
The creditors' bid has to be approved by bankruptcy court and any objections must be filed by the end of business Tuesday, Delphi said.
Platinum said late Monday it was still in talks with Delphi's creditors ahead of a court hearing on Wednesday.
"We look forward to working on the next phase of this process with Delphi, its lenders and General Motors -- all of whom have acknowledged the value of Platinum Equity's operating expertise," Platinum said.
Delphi filed for Chapter 11 in October 2005. It still produces about 10 percent of the parts used in GM's global production and its components go into nearly all of GM's North American production lines.