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Delphi secures 10th DIP loan accommodation agreement amendment
By Caroline Salls
Pittsburgh, July 1 - Delphi Corp. has entered into a 10th amendment to the accommodation agreement with its debtor-in-possession facility lenders, according to an 8-K filed with the Securities and Exchange Commission.
Under the amendment, the accommodation period will terminate on July 8 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 July 7 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 July 1 if the required lender consent was not received by June 30.
In addition, a $47 million repayment obligation will be triggered on July 7 if the term sheet is not delivered by July 6.
Specifically, the repayment obligation requires Delphi to apply the $47 million currently held as cash collateral to pay down the tranche A and tranche B portions of the DIP loan if the term sheet is not delivered by the deadline.
Also under the latest amendment, the DIP lenders have agreed to allow the company to use the proceeds of the DIP facility and to forbear from exercising their default-related rights until July 7, extended from June 30.
Additionally, the company's deadline for making interest payments due on the tranche C portion of the DIP loan was extended to July 7 from 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.
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