Delphi's hearing on disclosure statement approval pushed back to Dec. 6

By Reshmi Basu

New York, Nov. 29 - Delphi Corp. announced it would push back the hearing for approval of its disclosure statement to Dec. 6 as the company continues to negotiate with major stakeholders over proposed amendments to its plan of reorganization, according to a notice filed with the court.

Several creditors, including the unsecured creditors committee, have objected to the plan, arguing that a substantial amount of value has been reallocated from creditors to the plan investors.

This is the third time the hearing has been delayed.

On Nov. 16, Delphi obtained court approval of a "best efforts" engagement letter with potential exit facility arrangers J.P. Morgan Securities Inc., JPMorgan Chase Bank, NA and Citigroup Global Markets Inc.

Under the engagement letter, JPMorgan and Citigroup have agreed to attempt to assemble a syndicate for $6.8 billion in exit financing.

The company had originally been seeking up to $7.5 billion in funded debt and a $1.6 billion asset-based revolver but reduced that amount in light of the current credit crunch and as a result, made adjustments to recovery rates in the latest version of the plan.

The company has said that it expects to exit Chapter 11 during the first quarter of 2008.

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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