Delphi, which filed for bankruptcy in October 2005, has been struggling to wrap up exit financing for a reorganization plan confirmed by the bankruptcy court in New York in January because of tight U.S. credit markets.
NEW YORK (Reuters) - General Motors Corp. <GM.N> is considering shouldering more of auto parts maker Delphi Corp's <DPHIQ.PK> pension liabilities to help Delphi get out of bankruptcy protection, the Wall Street Journal reported on Wednesday.
Delphi, which filed for bankruptcy in October 2005, has been struggling to wrap up exit financing for a reorganization plan confirmed by the bankruptcy court in New York in January because of tight U.S. credit markets.
GM has already agreed to provide a significant portion of that financing to help set a pact, and is now in talks about going further to ease Delphi's multibillion-dollar pension burden, the WSJ said on its Web site, citing people familiar with the situation.
Troy, Michigan-based Delphi had sought to emerge from court protection by the end of the first quarter, but said recently it would emerge as soon as practicable and has been requesting extensions for deadlines on various agreements.
!ADVERTISEMENT!Delphi has sought $6.1 billion of exit financing, including up to $2.825 billion of loans from GM. An investor group led by Appaloosa Management LP has backed a $2.55 billion equity plan to support the reorganization as well.
Investors have given Delphi until Friday to finalize exit financing, which the company expects to have in place by the deadline, the WSJ said. Some of those investors now prefer to walk away from the equity investment altogether, the WSJ said, citing people familiar with the deal.
(Reporting by Franklin Paul; Editing by Tomasz Janowski)
