Delphi Corp., a bankrupt former parts unit of General Motors Corp., opened a 20-day rights offering to sell $2.87 billion worth of shares in the reorganized company.
The offering includes about 21.7 million shares at $59.61 available to existing shareholders, Troy, Michigan-based Delphi said in U.S. regulatory filing today. About 41 million shares are available to creditors at a discounted rate of $38.39.
Investors led by Appaloosa Management LP have agreed to buy all the discounted shares that creditors don t purchase. The group also plans to purchase an additional $800 million in preferred shares and $175 million in common shares on the date the company leaves bankruptcy, for a potential investment of $2.55 billion.