Delphi further extends DIP facility, General Motors agreements

By Caroline Salls

Pittsburgh, Sept. 4 - 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 Friday with the Securities and Exchange Commission.

The 13th 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 Sept. 17 from Sept. 3.

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.

The company said it also entered into a fourth amendment to its existing liquidity agreement with GM, under which GM agreed to accelerate payment of up to $300 million of payables to Delphi.

Delphi said the accelerated payments agreement provided that GM would generally recoup these accelerated payments on or after the date that GM's obligation to advance funds terminates or advances made become due and payable.

Delphi has also entered into a 32nd amendment to the accommodation agreement with its DIP facility lenders.

Under the amendment, the DIP facility lenders agreed to allow the company to continue using the proceeds of the DIP financing through 8 p.m. ET on Sept. 17, extended from Sept. 3.

In addition, the DIP loan amendment provides that assignments of DIP lenders' loans under the facility will not be processed by the administrative agent during the period beginning on Sept. 11 and ending on the date, if any, that the agent is notified by Delphi that its master disposition agreement has been terminated.

Delphi said it has been advised by the agent that in order to allow enough time for processing and settling trades by Sept. 10, all pending assignments for the DIP loans and related documentation required for pending purchasers to become record holders of DIP loans by Sept. 10 must be submitted by noon ET on Sept. 4.

The agent said it will attempt to process all trades of DIP loans properly submitted by the Sept. 4 deadline before Sept. 10.

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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