Saturday, 29 August 2015
Last updated 9 hours ago
Oct 28 2010 | 4:09am ET
Keeping auto-parts maker Delphi Corp. in business has cost General Motors some $12 billion. But the firm’s troubles are poised to prove highly profitable for a pair of hedge funds.
Elliott Management and Silver Point Capital could make more than $1.5 billion if Delphi goes public next year, as expected, the New York Post reports. The two hedge funds turned $2.9 billion in Delphi debt—which they acquired for about 15 cents on the dollar—into an 18% stake in the company after using their position as creditors to block the sale of Delphi to a private-equity firm that would have left lenders with almost nothing.
The stake has more than doubled in value since Delphi exited bankruptcy last October. At the time, it was worth $640 million.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…