Delphi amends GM liquidity advance, DIP loan accommodation agreements

By Caroline Salls

Pittsburgh, July 30 - Delphi Corp. has entered into further amendments to its existing advance agreement with General Motors Co. and the accommodation agreement with its debtor-in-possession facility lenders, according to an 8-K filed with the Securities and Exchange Commission.

The advance agreement amendment extends milestones, which, if not met, would prevent Delphi from continuing to access a $250 million tranche C credit facility.

Specifically, Delphi's ability to request advances on the tranche C facility was extended to 8 p.m. ET on July 30 from July 29.

According to the 8-K, the company's ability to request tranche C advances is conditioned on making progress on the transactions included in its modified plan of reorganization.

In addition, Delphi has entered into a series of amendments to the accommodation agreement with its DIP facility lenders.

Under the amendments, the accommodation period was set to terminate on July 30 if a majority of the tranche A and tranche B DIP lenders and a majority of all lenders who signed the accommodation agreement did not notify Delphi by July 29 that its term sheet outlining a resolution of issues related to General Motors's contributions is satisfactory.

The agreement was previously set to expire on July 25 if the required lender consent was not received by July 24.

The lenders also agreed to allow the company to continue using the proceeds of the DIP financing through 8 p.m. ET on July 30, extended from July 29.

In addition, a $47 million repayment obligation, which would have been triggered on July 24 if the term sheet was not delivered by July 23, has been eliminated.

Specifically, the repayment obligation required 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 was not delivered by the deadline.

Also, the requisite majority of DIP facility lenders now have 45 business days to notify the company that the modified plan it filed on June 1 is unsatisfactory, extended from 40 days.

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.