Delphi amends DIP to extend financials delivery, allow $100 million deposits toward employee buyout

By Caroline Salls

Pittsburgh, April 18 - Delphi Corp. entered into the second amendment to its debtor-in-possession credit facility that extends its financial statement delivery dates and allows the company to make up to $100 million in cash collateral deposits to satisfy its obligations under the UAW employee buyout program, according to an 8-K filing with the Securities and Exchange Commission.

The amendment permits Delphi to deliver its 2005 audited financial statements within 150 days of the end of the fiscal year and its March 31 quarterly financial statements by June 30.

The amendment also allows the company to make the cash collateral deposits under its employee buyout agreement with General Motors Corp. and the United Automobile, Aerospace and Agricultural Works of America and to sell and transfer inventory to domestic subsidiaries that are not guarantors, without reducing the $15 million basket for dispositions of assets to domestic subsidiaries that are not guarantors, the filing said.

The deposit and sale and transfer transactions are subject to a $25 million basket for investments by Delphi and its guarantors to domestic subsidiaries that are not guarantors.

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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