Delphi enters DIP amendment to extend 10-Q, 10-K filing deadlines

By Caroline Salls

Pittsburgh, Nov. 14 - Delphi Corp. entered into the sixth amendment to its debtor-in-possession credit agreement, giving the company additional time to deliver its quarterly financial statements for the period ended Sept. 30 and the annual financial statements for the period ended Dec. 31, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the quarterly report is now due no later than 165 days after Sept. 30 and the yearly report is now due no later than the later of 30 days after the 10-Q delivery date and the date specified by the SEC for the 10-K filing.

In addition, the amendment changes the definition of global EBITDAR to allow the full amount of the restructuring costs and related cash payments in connection with the company's UAW special attrition agreement and similar labor agreement obligations be excluded in the calculation of global EBITDAR.

The amendment also extends the date by which Delphi must deliver updated financial projections to March 31 from Dec. 15.

As previously reported, Delphi said it will require more time to complete its financial statements and file its 10-Q for the quarter ended Sept. 30 because of a potential issue with the designation of hedges related to foreign currency.

The potential issue was found during the audit of the company's 2006 consolidated financial statements and performing related interim procedures for the third quarter.

Specifically, Delphi said it became aware that the hedge designation for foreign currency forward contracts it had entered into to hedge exposure to foreign currency fluctuations may not have satisfied technical accounting rules under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities to qualify for exemption from the more strict effectiveness testing requirements.

Delphi is working with its current and former independent public accounting firms to review the accounting treatment accorded to these contacts.

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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