Delphi outlines financial projections to gain lender consent for GM arrangement, DIP loan accommodation

By Caroline Salls

Pittsburgh, Nov. 26 - Delphi Corp. said it planned to present its supplemental financial information to lenders on Nov. 26 in order to secure lender consents for its accommodation agreement, according to an 8-K filed with the Securities and Exchange Commission.

Delphi said the supplemental financial information includes near-term forecast updates to cash flows and liquidity levels through March 31, 2009.

Specifically, the lender presentation shows that Delphi expects to have $1.374 billion in consolidated cash in December, $969 million in January, $885 million in February and $741 million in March.

Total availability is forecasted to be $300 million in January, $215 million in February and $110 million in March. The forecast shows all of the availability will come from GM, while the company expects no debtor-in-possession financing availability.

The DIP loan revolver balance is expected to be $397 million in December and $300 million in each of January, February and March, and the GM agreement balance is projected at $85 million in February and $190 million in March.

Also, projected borrowing base cash collateral for December and January will be $200 million, with February cash collateral expected to be $155 million and March $150 million.

As previously reported, Delphi asked the U.S. Bankruptcy Court for the Southern District of New York to postpone the hearings on approval of its General Motors Corp. arrangement and DIP facility accommodation agreement until Dec. 1 to allow Delphi and GM to reconsider some amendments agreed to between the company and the required lenders after the arrangement and accommodation agreement were filed on Nov. 7.

Delphi said it expects amendment talks to be completed before the Dec. 1 hearing, although there is no guarantee that the company and the lenders will agree to any changes.

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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