Jul. 28, 2009 (United Press International) -- U.S. auto parts supplier Delphi Corp. (OOTC:DLPIV) (OOTC:DPHIQ) said it chose a bid from lenders that could end almost four years of the company's tenure in bankruptcy court.

The company's board of directors chose the bid over an offer from Platinum Equity Capital Partners, a firm owned by Parnassus Holdings LLC, which was backed by $2.5 billion in capital from General Motors Corp., The Detroit News reported Tuesday.

Platinum said it continued to believe in its offer. "With the right plan, Delphi can establish itself as a strong, viable competitor in the global automotive industry," the firm said in a statement.

U.S. Bankruptcy Judge Robert Drain will review the decision in a hearing Wednesday.

The deal with lenders includes selling Delphi's steering business to GM and closing four Delphi factories.

Delphi filed for court protection in October 2005. The former GM division once boasted 37 factories and 80,000 workers. The new plan reduces the company to four plants and a workforce of about 12,700.