GM To Rescue Delphi?

March 2008 | Corporate Financing News Alert

The ongoing bankruptcy saga involving Delphi has taken a fresh twist after the bankrupt auto-parts manufacturer's former parent company, General Motors, offered to provide US$2.8bn in loans to help the company emerge from Chapter 11 protection. Delphi has revealed that the GM package would include a first-lien term note of up to US$2bn issued to GM as well as a US$825mn second-lien loan, leaving a US$1.6bn asset-backed revolving credit facility and a further US$1.7bn first-lien loan still outstanding. However, the restructuring package may yet cause more problems than it solves.

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