Delphi Corp. has been given more time to work on its reorganization plan.
According to a recent Reuters report, the U.S. Bankruptcy Court has extended Delphi’s right to file a reorganization plan without outside interference through August, giving it time to work out alternate financing. Several weeks ago an investor group led by Appaloosa Management LP pulled out of a $2.55 billion equity plan, forcing the parts maker to rewrite its financing plans. The court also approved $4.1 billion of debtor-in-possession financing that expires Dec. 31, replacing $4.5 billion of loans.
Delphi filed for Chapter 11 in 2005. Chairman Steve Miller said he expects it to be several months yet before the company is prepared to emerge from bankruptcy.
