TROY, Mich. — The judge handling Delphi Corp.’s Chapter 11 case has said the auto parts maker can postpone repayment of its $4.35 billion in loans for six months. Delphi has been using the loans to fund operations while in bankruptcy.
According to a report from the Associated Press (AP), Delphi needed the extension in part, because it has been relying on former parent General Motors (GM) for financing in this current credit crunch. GM planned to provide an additional $600 million in loans, the AP report said.
Delphi’s loan repayment deadline has been pushed back to June 30.