Delphi Corporation on Friday night said that its anticipated closing third quarter cash balance is over $US1.6 billion and added that it would make its regular monthly payments to suppliers around October 4, 2005, as contractually scheduled.
The struggling components maker previously drew $1.5 billion under its $1.8 billion revolving credit facility to make extra cash available to finance operations during restructuring discussions with unions and General Motors Corp.
“The company has not requested nor made any further draws against its revolving credit facility since the earlier announcement,” Delphi said in a statement.
The company added that, though able to do so, it did not make a voluntary repayment to creditors so that it could continue to maintain additional liquidity as it works on restructuring.
“The immediate effect of non-compliance on the loan facilities would be to prevent Delphi from obtaining further revolving credit facility advances, which the company was not contemplating,” Delphi said.