Delphi Corp., an auto-parts maker in bankruptcy since last year, asked a judge to extend for six more months its exclusive right to ask creditors for approval of its reorganization plan.
Under an extension granted in June by the U.S. Bankruptcy Court in New York, Delphi has the sole right to file plans through Feb. 1 and to solicit approvals through April 2. The company asked Judge Robert Drain on Friday to extend the proposal period to July 31 and the solicitation period to Sept. 30.
“Although the debtors have publicly projected emergence from bankruptcy by the end of the second quarter in 2007,” a further extension was requested because of “the size and complexity” of the case, company lawyers from Skadden, Arps, Slate, Meagher & Flom said in court papers.
Delphi, a General Motors Corp. spinoff with a $2.35 billion loss last year on $26.9 billion in sales, sought protection from creditors in October 2005. It reported $17.1 billion in assets and $22.2 billion in debt after failing to win financial aid from GM and concessions from unions.
Thursday, Delphi’s second- largest shareholder, Highland Capital Management LP, proposed investing $4.7 billion in the company.
The offer came three days after a $3.43 billion offer by five New York financial firms led by Cerberus Capital Management LP and top shareholder Appa loosa Management LP. The other firms are Harbinger Capital Partners Master Fund I Ltd., Merrill Lynch & Co. and UBS Securities LLC, Delphi said.
