Delphi Receives Court Approval on DIP Accommodation Agreement
Company Maintains Access to Liquidity Through June 2009
Release Date.- TROY, Mich. -- Delphi Corp. (PINKSHEETS: DPHIQ today announced that the U.S. Bankruptcy Court for the Southern District of New York granted the company’s motion for approval of its Debtor-In-Possession (DIP) Accommodation Agreement. Delphi filed the motion on Nov. 7, 2008.
The DIP Accommodation Agreement, an agreement between Delphi and certain lenders that constitute greater than a majority of holders by amount of Delphi’s two most senior tranches of its DIP Credit Facility, provides Delphi the authority to continue use of the proceeds from its DIP Credit Facility through June 30, 2009.
“The provisions of the Accommodation Agreement (together with other agreements achieved during these Chapter 11 cases) serve to provide substantial assurance to our stakeholders of our continued access to liquidity to fund our operations and facilitate our efforts to satisfy emergence capital funding needs as contemplated under the Modified Plan,” said John Sheehan, Delphi vice-president and chief financial officer.
The agreement reflects the support of the administrative agent and the Required Lenders for Delphi’s transformation efforts, despite the current economic downturn and the unprecedented turmoil in the capital markets.
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