Delphi Gets Financing Commitment From GM Affiliate

SAN FRANCISCO (MarketWatch) — Delphi Corp. said Monday it has received a new commitment from a General Motors Corp. affiliate and intends to relaunch a financing plan worth $6.1 billion with which to exit bankruptcy. The Troy, Mich., auto-parts company — the biggest supplier of parts to GM — said the plan includes a first-lien term note of up to $2 billion that will be issued by the GM affiliate. The arrangement won’t violate Delphi’s $2.55 billion equity investment deal with investors, who have claimed in U.S. Bankruptcy Court that the company’s original financing package wouldn’t comply with its investment agreement. At a hearing Friday, the court ruled that GM couldn’t directly provide incremental exit financing but that the prohibition didn’t extend to its units and affiliates. Delphi has been under Chapter 11 bankruptcy protection since October 2005.
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