Delphi, GM’s biggest auto parts supplier, filed for bankruptcy protection under Chapter 11 in 2005 and announced the launch of exit financing in January. GM is considering a further increase in financing Delphi’s multi-billion dollar pension burden, as the supplier is struggling to meet a restructuring plan confirmed by the bankruptcy court in New York due to tight U.S. credit markets. The Detroit-based parts supplier is seeking extensions on agreement deadlines, and failed to meet its goal of emerging from court protection by the end of 2008’s first quarter.
Delphi seeks $6.1 billion in exit financing, with up to $2.825 billion in first-lien and second-lien term notes from GM, as well as a $2.55 billion equity plan from an Appaloosa Management-led investor group, according to Automotive News. Delphi was given until Friday by investors to finalize financing and the remaining approximate $700,000, which it expects to meet.
In a January statement, Delphi re-adjusted its planned exit facilities from the $6.8 billion authorized by the Bankruptcy Court to around $6.1 billion. In October of 2005, when Delphi filed under Chapter 11, it cited a $22 billion deficit.
04/03, 10:25 AM
posted by:
mayer_ray_nagin
I say dump GM should Delphi and get auto parts from AutoZone like the rest of us.
04/03, 11:19 AM
posted by:
Fletch
JT Battenburg and his executives were a bunch of crooks. I hope they are prosecuted.
04/03, 11:57 AM
posted by:
400horseSS
How long does GM have to keep supporting them, usually when you sell off that means you have no more obligations right!
04/03, 11:58 AM
posted by:
corvette
damn $22 billion deficit.
04/03, 12:03 PM
posted by:
keverly
they have obligations because no Delphi = no parts. and it would cost them more time and money to get new suppliers than to help Delphi.
04/03, 3:06 PM
posted by:
shitalker
as much **** as i have been talking on gm and rest of the big 3’s. i have to say my roots is from them and it’s really sad for me to see all this happening right now. but what’s more important for them to do other than putting out fires is to figure out how the fire got started in the first place.
a.k.a. how did you fat white castle ****heads got this way???