"Delphi Corp.'s lenders prevailed in a bankruptcy auction and are poised to take control of the bankrupt auto-parts supplier, beating back a government-orchestrated deal to sell the company to [GM] and a California-based private-equity firm, said people familiar with the situation. Delphi's lenders prevailed in the auction by forgiving $3.5 billion in debt they are owed, a process known as credit bidding. The debt, a so-called debtor-in-possession loan, is owned by several investment funds led by Elliott Management and Silver Point Capital LP", Mike Spector at the WSJ, 28 July 2009, link: http://online.wsj.com/article/SB124874527824585671.html.
Didn't you know? Government liability guarantees are free?
Good show Judge Robert Drain.