Delphi Corp. has until May 29 to submit an amended reorganization plan to the bankruptcy court, but this latest postponement pushes the autoparts manufacturer closer to a government deadline for General Motors Corp. to restructure or file for bankruptcy.
The new date for a court hearing on Delphi’s proposed modified plan was contained in court papers the company filed on Wednesday. The previous date was May 21.
"As Delphi continues to engage in discussions with its debtor-in-possession lenders, GM and the U.S. Treasury regarding submission of a term sheet that addresses most of the remaining elements of our restructuring, it would be premature to conduct a hearing since modifications have not yet been finalized and formally documented," Delphi spokesman Lindsey Williams said.
General Motors was the parent of Delphi, which still has hundreds of employees in the Dayton area and thousands of local retirees, until the former parts business was spun off in 1999. The company is a key GM supplier.
Since April, the deadline has been continuously pushed back as the government’s auto task force became increasingly involved in the reorganization.
Delphi has been in Chapter 11 bankruptcy protection since October 2005.
For months, GM has been in negotiations to help Delphi emerge from bankruptcy, or to take back certain Delphi plants that produce critical components for its vehicles.
