Delphi receives exclusivity extension; committees get nod to participate in emergence funding

By Caroline Salls

Pittsburgh, Oct. 27 - Delphi Corp. obtained an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the company's exclusive plan-filing period was extended to Jan. 31 from Oct. 31 and the solicitation period to March 31 from Dec. 31.

Delphi's official committee of unsecured creditors and official committee of equity holders agreed to the extension. If the exclusive periods expire, Delphi and the committees will address whether the Bankruptcy Code gives the committees the right to file or solicit votes on a competing plan.

In addition, the committees reserved the right to request a reduction of Delphi's exclusivity.

Under a separate order, the statutory committees were granted court approval to participate in the company's emergence capital funding.

However, the order stipulates that the committee member must notify the company, counsel and the U.S. Trustee in advance of its participation and must agree not to share any information regarding the company's strategy with its institution, lenders or other exit financing party.

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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