Delphi looks to extend exclusivity in case amended plan lacks support

By Jennifer Lanning Drey

Portland, Ore., July 6 - Delphi Corp. requested an extension to its exclusive periods to file a plan of reorganization and to solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend the exclusive plan-filing period to Sept. 30 from July 31 and the solicitation period to Nov. 30 from Sept. 30.

Delphi said it continues to believe a reorganization plan is superior to an asset sale but has committed to complete a sale of the company if it fails to obtain the sufficient stakeholder support needed to confirm its proposed amended plan of reorganization.

As previously reported, under Delphi's proposed plan amendments, the company would emerge from Chapter 11 through a transaction with Parnassus Holdings II, LLC and with the support of General Motors Corp. affiliate GM Components Holdings LLC.

Delphi said it hopes to close the related transactions on or about July 31, but a closing may not occur by that date due to the need for foreign governmental approval.

Closing under the agreement must occur by Sept. 30 or the parties can terminate the agreement.

Delphi said seeking to consummate an alternative transaction to the current agreement would require additional time.

A hearing is scheduled for July 23.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. 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.