TROY, Mich. -- Delphi Corp. on Friday filed modifications to its confirmed First Amended Joint Plan of Reorganization and related modifications to its First Amended Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York.  "Having substantially achieved all of the objectives identified in our 2006 transformation plan, today's filing represents a significant step that positions Delphi to move forward with the remaining elements of our Chapter 11 proceedings," said Rodney O'Neal, Delphi CEO and president.  

To facilitate its emergence from Chapter 11, Delphi anticipates raising approximately $3.75 billion of funded emergence capital through a combination of term debt and rights to purchase equity in Reorganized Delphi, comprised of at least $2.75 billion in funded first and second lien debt, plus up to $1.2 billion of unfunded debt through an asset-backed revolving credit facility. Delphi anticipates raising the remaining $1 billion funded emergence capital through a rights offering and direct subscription for new common stock in Reorganized Delphi. Delphi expects the principal sources of its emergence capital to be its existing creditors and stakeholders and anticipates supplementing its emergence capital funding disclosures at or prior to the Preliminary Modification Hearing.

 

The parts supplier said it anticipates emerging from Chapter 11 “as soon as reasonably practicable.”

To achieve the recoveries contemplated in its Modified Plan, Delphi will be required to achieve its target of $3.75 billion in funded emergence capital and the discount rights offering will be backstopped or subscribed at a discount not to exceed 40 percent of Plan Equity Value. In the event that these targets are not achieved, Delphi would be required to procure GM's consent pursuant to the company's agreements with GM regarding any modified recovery, and the minimum recovery to holders of unsubordinated General Unsecured Claims would be proportionally reduced.