Delphi gets two-month exclusivity extension to continue negotiations

By Jennifer Lanning Drey

Portland, Ore., May 21 - Delphi Corp. was granted a fifth extension to its exclusive periods to file a plan of reorganization and to solicit votes on the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The exclusive plan-filing period was extended to July 31 from May 31 and the solicitation period to Sept. 30 from July 31.

As previously reported, the extension request only applies to Delphi's statutory committees because its exclusivity in connection with all other parties in interest has already been extended until after Delphi's plan takes effect.

Delphi said it is continuing to negotiate with its debtor-in-possession lenders, General Motors Corp. and the Auto Task Force for further support because of the dramatic decline in volumes in the auto industry.

Because negotiations are not expected to be final until later this month, in advance of the Obama administration's June 1 deadline for an agreement on GM's restructuring, Delphi said it believes that it will need more time to file appropriate plan modifications and solicit votes on those 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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