Bankruptcy court denies Federal-Mogul's request to deal with Citigroup

SOUTHFIELD, Mich. (Sept. 2)—The U.S. Bankruptcy Court for the District of Delaware Aug. 28 denied Federal-Mogul Corp.'s motion for an order authorizing it to negotiate a capital investment in the company with Citigroup Venture Capital Equity Partners L.P. Federal-Mogul disclosed the denial in a filing with the U.S. Securities & Exchange Commission but did not say why it had been denied. The Southfield firm, which has been in Chapter 11 since October 2001, had asked the court Aug. 27 to approve a 90-day exclusive negotiating period with Citigroup and authorize reimbursement of necessary due diligence costs to the equity group.