Delphi makes more accommodation agreement changes ahead of hearing

By Caroline Salls

Pittsburgh, April 22 - Delphi Corp. said it has agreed to further changes to its second round of accommodation agreement amendments, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The changes have also been approved by General Motors Corp. and the U.S. Treasury Department Auto Task Force, and participating lenders also support the changes.

Under the changes, the company's deadline for delivering a term sheet to its debtor-in-possession facility lender agent has been extended to May 4.

In addition, Delphi would be required to apply incremental borrowing base cash collateral to repayment of its tranche A and tranche B DIP loans on May 5 if the term sheet is not delivered on time.

The accommodation period will terminate on May 9 if the required lenders do not approve the term sheet by May 8.

Delphi said the changes also modify an accommodation agreement covenant related to the company's minimum borrowing base cash collateral account balance and require the company to apply future interest payments due to the tranche C DIP lenders to repay the tranche A and B DIP loans until they are paid in full.

Also, the amendments require Delphi to use $25 million of incremental borrowing base cash collateral to repay the tranche A and B DIP loans, add the Pension Benefit Guaranty Corp. to a list of parties that must be notified if the agent takes any enforcement action against collateral and provide for the payment of additional fees and expenses to participating lenders.

A hearing on the accommodation agreement amendments is scheduled for April 23.

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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