Cerberus Capital Management, the US distressed debt specialist and hedge fund firm, is leading a $3.4bn (€2.6bn) equity investment in a bankrupt auto components firm formerly owned by General Motors. Earlier this year, Cerberus led a consortium that bought a $14bn stake in GMAC, the financing arm of GM.

Cerberus specialises in distressed investments by putting money into the debt of undervalued or financially troubled companies. It takes equity stakes through acquisitions, particularly companies with operational and financial difficulties.