Delphi secures sixth amendment to DIP loan accommodation agreement

By Caroline Salls

Pittsburgh, June 15 - Delphi Corp. has entered into a sixth amendment to the accommodation agreement with its debtor-in-possession facility lenders, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the sixth amendment, the accommodation period will terminate on June 20 if a majority of the tranche A and tranche B DIP lenders and a majority of all lenders who signed the accommodation agreement do not notify Delphi by June 19 that its term sheet outlining a resolution of issues related to General Motors Corp.'s contributions is satisfactory.

The agreement was previously set to expire on June 13 if the required lender consent was not received by June 12.

In addition, the sixth amendment also requires Delphi's pledges on the stock of its Polish subsidiary and German subsidiary to be created and perfected by June 23.

As previously reported, the DIP lenders have agreed to allow Delphi to continue to use the proceeds of the DIP facility and to forbear from exercising their default-related rights until June 30.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.