The US Bankruptcy Court has adjourned until 2 April approval hearings on Delphi’s proposed sale of its global steering business to General Motors to give the US treasury more time to evaluate the agreements, the supplier said.
The treasury has deemed the agreements “material transactions” under its 31 December 2008 loan agreement with GM and the postponement will also give Delphi time to deal with other objectors.
Delphi said GM had agreed to increase from $300m to $450m the amount it was committed to advance to Delphi.
Delphi also said that the postponement would give it time for more talks with its DIP lenders, creditors’ committee, GM and the treasury over changes to its reorganisation plan.
“Completion of the amendment process and approval of the motions now scheduled for hearing on 2 April should facilitate the company’s access to additional liquidity to manage its US operations while providing the company with the liquidity runway to complete discussions with stakeholders and obtain court approval of reorganisation plan modifications,” Delphi said in a statement.