Delphi asks for more time to reorganize

Delphi Corp. said on Monday it would seek changes to its bankruptcy debtor-in-possession financing and an extension of US$4.35 billion to the middle of next year, or until it completes its reorganization.
Delphi, which filed for bankruptcy protection in October 2005, also said it expected to meet with investors on Monday to discuss efforts to extend the financing.
The Troy, Michigan-based parts supplier cut its 2008 revenue forecast to US$21.64 billion, from US$22.2 billion mainly due to lower projected industry vehicle production volumes.
Delphi raised its first-half 2009 revenue forecast to US$9.79 billion, from US$9.63 billion due to slower than previously expected divestitures and by reduction in volumes.
The parts maker said its revised DIP financing plan includes a US$1.1 billion first priority revolving credit, US$500 million first priority term loan, and US$2.75 billion of second priority term loan.
Delphi also plans to submit new financial figures to reflect the delay in emerging from bankruptcy, the timing of planned divestitures and a 10 per cent reduction in projected global vehicle production volumes from prior estimates.
The parts maker had entered the final stages of emerging from court protection in April when potential equity investors led by Appaloosa Management pulled out, forcing Delphi to look for alternatives.
A month ago, Delphi won court approval for increased support from former parent General Motors to support its eventual emergence from bankruptcy.