Delphi Technologies said it had been taking significant steps to conserve cash given the immediate impact on its business from the coronavirus pandemic.

This includes working to access government support in countries where it operates, effecting temporary layoffs, moving employees to part time schedules and pay reductions throughout the organisation, disciplined inventory management and active past dues collection.

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Delphi has also drawn down on its full $500m revolving credit facility to best position the company to weather the current market conditions.

"This precaution is consistent with actions being taken by companies across all industries, regardless of whether they have immediate cash liquidity requirements," the supplier said.

As a result of its decision to draw down on its revolver on 30 March, 2020, Delphi Technologies received notice from BorgWarner that it materially breached the transaction agreement between BorgWarner and Delphi as a result of drawing on the revolving credit facility without BorgWarner's prior written consent and also asserting that, if such breach was not cured within 30 days, BorgWarner had the right to terminate the agreement. Delphi Technologies disputes BorgWarner's breach assertion on the basis that BorgWarner unreasonably withheld its consent.

At this time, Delphi Technologies intends to continue to negotiate with BorgWarner to resolve this matter. Both companies continue to believe in the long-term strategic value of the transaction and are still working together towards closing the transaction in the second half of 2020. There can be no assurance, however, that BorgWarner and Delphi will reach a mutually acceptable resolution or that the transaction will close.

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