Delphi plan confirmation order comes through, but exit financing still not seen

By Rebecca Melvin

New York, Jan. 25 - With reorganization plan confirmation order in hand, Delphi Corp. continues to take steps to emerge from Chapter 11 bankrupcty by the end of March, but no exit financing has yet been secured, a Delphi spokesman said Friday.

"We are continuing to negotiate with our lenders," spokesman Lindsey Williams said.

The company resubmitted its modifications to its reorganization plan Thursday; the changes were reviewed at the U.S. Bankruptcy Court for the Southern District of New York Friday morning and early afternoon; and the 76-page order was entered by the court later Friday.

Judge Robert D. Drain approved the Delphi plan Tuesday conditioned on a reduction of Delphi's executive cash bonus plan to $16.5 million from $87 million.

Delphi launched exit financing activities with its lenders on Jan. 9 and 10, and had initially hoped to obtain the financing by Jan. 23, Williams said.

He wouldn't comment on why the $6.1 billion in exit financing hasn't yet been secured.

The plan confirmation doesn't hinge in any way on exit financing, but emergence from bankruptcy does, he said.

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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