Delphi Automotive Plc fka DLPH

[rheddle]

Delphi talks with GM, U.S. on Chapter 11 exit

BY JEWEL GOPWANI • FREE PRESS BUSINESS WRITER • May 30, 2009


Troy-based supplier Delphi Corp. continues talks with its lenders General Motors Corp. and the U.S. Treasury on a deal that would bring the supplier out of bankruptcy.
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But the supplier issued a warning Friday evening that if a deal can't be reached by Monday, or if the company can't get an extension, that it could default on its loans.

The disclosure, made in a filing with the Securities and Exchange Commission, comes days before a hearing slated Tuesday in which the supplier must present the deal to a bankruptcy court.

It is expected that Delphi could file those changes over the weekend.

Those changes will likely include plans to move five of Delphi's plants back to its former parent, GM.

In a deal reached between GM and the UAW, ratified Friday, GM plans to take back five plants, including factories in Saginaw and Grand Rapids.

In a previous plan for Delphi's bankruptcy exit, four of those plants were expected to be part of the supplier's operation after it emerged from bankruptcy.

Meanwhile GM, Delphi's largest customer, is to file for bankruptcy protection Monday.

Delphi filed for Chapter 11 in October 2005 and has had trouble securing the financing it needs to exit bankruptcy.

Contact JEWEL GOPWANI: 313-223-4550 or [e-mail]