From Bloomberg
TROY, MI — Delphi Corp. said Wednesday it reached an agreement with General Motors Corp. and investors for a new Chapter 11 reorganization plan that requires $5.2 billion in exit financing.
A previous reorganization plan required $7.1 billion in exit financing. New terms can be achieved "during this challenging capital markets environment," Delphi Chief Restructuring Officer John Sheehan said Wednesday in a written statement.
Committees representing Delphi’s creditors and shareholders oppose the proposed changes, according to the statement.
Delphi said Oct. 30 that it planned to change the payouts to creditors under its reorganization plan, giving them more securities instead of cash, because it wasn’t able to obtain an exit loan as large as it had originally intended. Appaloosa Management LP, Delphi’s largest shareholder, said on Nov. 8 that the $2.55 billion investment offer it was leading to help Delphi exit bankruptcy had been terminated.