DPHIQ NEWS >> Delphi in talks to resolve bankruptcy case
Fri May 29, 2009 5:37pm EDT
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Delphi negotiating deal with GM, Treasury
* Seeking extension, waiver from lenders
DETROIT, May 29 (Reuters) - Auto parts supplier Delphi Corp (DPHIQ.PK) said on Friday it was in talks with former parent General Motors Corp (GM.N) and the U.S. Treasury to reach a resolution to its Chapter 11 bankruptcy case before June 1.
Delphi, which filed for bankruptcy in 2005, said in a filing with the U.S. Securities and Exchange Commission that it needed to reach a funding agreement with GM to continue to use the proceeds of its debtor-in-posession credit facility until June 30.
The company said it was also seeking to obtain an extension and waiver from its lenders.
The filing comes days ahead of the U.S. government's June 1 deadline for GM to restructure or file for bankruptcy.
Delphi, which was spun off from GM in 1999, remains one of the automaker's key suppliers.
GM, which has been in negotiations for months to help Delphi emerge from bankruptcy, said this week that it has agreed to buy back five Delphi plants that produce components critical to its vehicle lineup.
Delphi's reorganization has been complicated by difficulties obtaining exit financing and the collapse of U.S. auto sales that threatens to push GM into bankruptcy as well.
The New York Times reported earlier on Friday that Delphi could emerge from bankruptcy, with the Obama administration's autos industry taskforce pushing for a sale of its assets, possibly to another parts supplier or an investment firm.
The case is In re: Delphi Corp, U.S. Bankruptcy Court, Southern District of New York, No. 05-44481. (Reporting by Soyoung Kim; Editing by Tim Dobbyn)
