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Delphi gets court OK on DIP amendments
By Reshmi Basu
New York, Nov. 16 - Delphi Corp. obtained approval to amend its debtor-in-possession facility, including an interest rate increase, at a Friday hearing in the U.S. Bankruptcy Court for the Southern District of New York.
As previously reported, Delphi is looking to extend the maturity of its $4.5 billion refinanced DIP facility until the earlier of June 30, 2008 or the effective date of its plan of reorganization from Dec. 31.
Under the DIP amendment, the maturity can be further extended to Sept. 30, 2008 if Delphi pays an amount equal to 25 basis points of the tranche A DIP commitment and the tranche B and tranche C loans.
In addition, interest on the tranche A and tranche B borrowings before July 1, 2008 will be increased to Libor plus 275 bps and interest on the tranche C borrowings before July 1, 2008 will be increased to Libor plus 325 bps.
Interest on the tranche A and B borrowings after July 1, 2008 will be Libor plus 300 bps, and interest on the tranche C borrowings after July 1, 2008 will be Libor plus 350 bps.
Currently, interest on the tranche A borrowings is Libor plus 250 bps; interest on the tranche B borrowings is Libor plus 225 bps, and interest on the tranche C borrowings is Libor plus 275 bps.
Also, the amendment increases the global EBITDAR covenant requirements.
Under the amended DIP facility, for each rolling fiscal 12-month period ending on the last day of the months of Dec. 31, 2007 through Aug. 31, 2008, the global EBITDAR must range from $475 million to $500 million.
Meanwhile, the current DIP covenant covers the months of March 31, 2007 to Nov. 30, 2007, with a global EBITDAR range of $130 million to $375 million.
Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.
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