After pouting from not having its every wish met during Chrysler’s fall from grace, the DC braintrust may have learned a thing or two in the process. A group of hedge funds that provided over $3 billion in DIP financing to Delphi in 2007 argue they were conveniently left out of the bidding process for the auto supplier’s assets and lost out on their opportunity to milk General Motors a little more. They (credibly) contend Delphi struck a government backed deal with a PE firm and GM at their expense. But Delphi and the government are sticking to their story that they were just hitting the best bid out there but would be psyched if a better one materializes- just not from their own creditors.
We feel we bent over backwards to accommodate any possible interest in Delphi,” said an Obama administration official. “We have no problem with the process and if a better bid comes out, that’s awesome.”
