Delphi DIP loan accommodation agreement extended with 16th amendment

By Caroline Salls

Pittsburgh, July 20 - Delphi Corp. has entered into a 16th amendment to the accommodation agreement with its debtor-in- possession facility lenders, according to an 8-K filed with the Securities and Exchange Commission.

Under the amendment, the accommodation period will terminate on July 22 if a majority of the tranche A and tranche B DIP lenders and a majority of all lenders who signed the accommodation agreement do not notify Delphi by July 21 that its term sheet outlining a resolution of issues related to General Motors Corp.'s contributions is satisfactory.

The agreement was previously set to expire on July 18 if the required lender consent was not received by July 17.

In addition, a $47 million repayment obligation will be triggered on July 21 if the term sheet is not delivered by July 20.

Specifically, the repayment obligation requires Delphi to apply the $47 million currently held as cash collateral to pay down the tranche A and tranche B portions of the DIP loan if the term sheet is not delivered by the deadline.

Also under the latest amendment, the DIP lenders have agreed to allow the company to use the proceeds of the DIP facility and to forbear from exercising their default-related rights until 10 p.m. ET on July 21, extended from July 17.

Additionally, the company's deadline for making interest payments due on the tranche C portion of the DIP loan was extended to July 21 from July 17.

Finally, the 12th amendment gives the requisite majority of lenders 40 business days, extended from 35 busy days, to notify Delphi that the modified plan of reorganization filed on June 1 is not satisfactory.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

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