Court extends Delphi deadline to reach GM deal
Bankrupt U.S. auto parts maker Delphi Corp (DPHIQ.PK) won interim court approval of a two-week extension of the deadline for it to reach a funding agreement with General Motors Corp (GM.N), according to court documents.
A hearing will be held on May 21 for final approval of the GM agreement, which increases the amount of funding available to Delphi to $450 million.
In addition, the court order extended to June 2 the use of bankruptcy financing before Delphi must reach a new agreement with its lenders. The previous deadline was set to expire on Saturday.
Delphi filed for bankruptcy in 2005, and its reorganization has been complicated by a collapse of auto sales that threatens to push GM into bankruptcy as well. GM has taken $15.4 billion of emergency loans from the government, which has set a June 1 deadline for the automaker to reach agreements to overhaul operations.