(Reuters) – Hedge funds that provided bankrupt U.S. auto parts maker Delphi (DPHIQ.PK) with debtor-in-possession (DIP) financing are not getting access to the firm’s books, hindering their ability to make a takeover offer, the New York Post reported, citing a person familiar with the situation.
The lenders are led by hedge fund Elliott Associates, the paper said.
In case they do not get access to Delphi’s books soon, the lenders may approach the judge handling the bankruptcy case to intervene, a source told the paper.
Delphi was not available to comment.
Delphi, which filed for bankruptcy in 2005, said earlier this month it had reached a deal to sell most of its global operations to private equity firm Platinum Equity. The deal includes $4 billion in funding from bankrupt General Motors Corp (GMGMQ.PK), which spun off Delphi in 1999. [ID:nN01473610]
U.S. Bankruptcy Judge Robert Drain said at that time Delphi had to open its sale up to other investors in an auction. The auction will take place on July 17 if additional bidders come forward, according to court documents filed last week.
Drain set a July 10 deadline for bids and said that, if there were qualified bids, the auction would take place on July 17, according to documents.
(Reporting by Ajay Kamalakaran in Bangalore; Editing by Dan Lalor)