Although auto-parts maker Delphi got off to a slow start in its first day of trading following its initial public offering, billionaire hedge-fund boss Paul Singer can ride off with $1.3 billion in profits.
His hedge fund, Elliott Capital Management, turned a roughly $300 million debt investment in the company into $1.3 billion, including Elliott’s Delphi stake and shares it sold before yesterday’s IPO, one Delphi investor told The Post.
Elliott still has a 12.9 percent Delphi stake. Delphi fell 3 percent in its first day of trading to close at $21.33.
Elliott and partner Silver Point Capital demanded an 18-percent Delphi stake in 2009 as payment from other lenders in exchange for agreeing to convert their Delphi debt into equity and allowing it to emerge from Chapter 11. The move rankled fellow creditors.
Elliott also outmaneuvered the government, which had bailed out Delphi, and prevented it from selling the company to Platinum Equity Partners for $3.6 billion by suggesting it could force a liquidation through its debt positions.