Delphi Corp., the auto-parts maker once owned by General Motors, was barred by a judge from paying as much as $30 million of Platinum Equity LLC’s expenses tied to its bid for much of the company’s assets.
The request “dramatically exceeds what is appropriate,” US Bankruptcy Judge Robert Drain said. Approving the fee also would have violated the terms of Troy, Mich.-based Delphi’s bankruptcy loan, he said.
Lenders and creditors had objected to the request, saying the expense reimbursement amounted to a gift to Beverly Hills, Calif.-based Platinum.
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