Delphi looks to extend reorganization through May 31, still waiting for exit financing commitment

By Caroline Salls

Pittsburgh, Feb. 29 - Although its plan of reorganization was confirmed on Feb. 4, Delphi Corp. requested an extension to its exclusive plan-filing and vote solicitation periods Thursday, essentially asking the U.S. Bankruptcy Court for the Southern District of New York to give it until May 31 to complete its reorganization.

According to the motion, Delphi's reorganization efforts were affected by "severe dislocations in the capital markets" beginning late in the second quarter of 2007. The company said the market troubles have continued through the first quarter of 2008.

"This turbulence in the capital markets was a principal cause of the delay in the debtors' emergence from Chapter 11 before the end of 2007," Delphi said in the motion.

The company said the continued turbulence justifies a further exclusivity extension, as do unresolved contingencies related to its fully committed exit financing and the size and complexity of Delphi's Chapter 11 case.

Specifically, the company said it must "still procure fully committed exit financing that will support implementation of the plan."

The company's exclusive plan-filing period is set to expire on March 31. However, the bankruptcy court cannot confirm more than one plan in a Chapter 11 case, so there is no threat of a competing plan being filed at this point.

Delphi said in the motion that, despite the exclusivity extension request, it still plans to emerge from bankruptcy "as soon as reasonably practicable."

In addition to the plan-filing extension, Delphi is also asking the court to extend its exclusive plan vote solicitation period to July 31 from May 31.

A hearing is scheduled for March 19.

Delphi is a Troy, Mich.-based automotive electronics manufacturer that filed for bankruptcy protection on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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