Deal volume got a major boost during the past two weeks, aided by
Delphi, the automotive parts maker that was spun off by General Motors, emerged from a four-year stay in bankruptcy protection. The company, which cut thousands of workers and divested several business assets, agreed to sell its steering systems operations and four plants back to GM for the reorganization.
The company’s emergence from bankruptcy was executed through a sale of most of its assets to a new holding company called Delphi Holdings, which is led by senior creditors Elliott Management Corp. and
Thomson Reuters (publisher of PE Week) tracked five leveraged buyouts from Oct. 6 to Oct. 13. Only two disclosed financial terms, but a majority of the deal value is from the reorganization that led to Delphi’s emergence from Chapter 11 after four years under bankruptcy protection.
The reorganization and the period’s other deals had an aggregate value of $11.01 billion. This more than doubled year-to-date deal volume to $22.13 billion from $10.96 billion.
Fund-raising activities of the period included a final closings and the start of new investment vehicles. Menlo Park, Calif.-based
So far in 2009, buyout and mezzanine firms have secured $51.9 billion in capital commitments. —Eamon Beltran