Supplier Information
All of our suppliers play a significant role in our ability to
continue to serve the needs of our customers.
The chapter 11 process will permit Delphi to preserve the value of
the company and complete its transformation plan designed to resolve Delphi's
existing legacy issues and the resulting high cost structure of our U.S.
operations. Our chapter 11 business reorganization is well financed, well
planned and well organized.
We have adequate cash to continue paying for goods and services we
need to operate and serve our customers. We plan to finance our global
operations by utilizing our access to a total of $4.5 billion in credit
facilities, including a new $2 billion debtor-in-possession (DIP) financing facility
being provided by a group of lenders led by JPMorgan
Chase Bank and Citigroup Global Markets, Inc., and $2.5 billion borrowed from
pre-existing revolving and term loan credit facilities. The proceeds from the
DIP financing together with cash generated from daily operations and cash on
hand will be used to fund post-petition operating expenses, including supplier
obligations and employee wages, salaries and benefits.
The overall liquidity includes more than $1 billion on hand
outside the
With respect to our ongoing business relationship, the Bankruptcy
Code provides priority status for post-petition orders and shipments (goods and
services received after the chapter 11 filing date) that you provide to us.
Therefore, you can be assured that we can and will pay for the goods and
services you provide to us after the October 8 filing date.
Unfortunately, for goods and services received before the filing
date, federal law prohibits payment except pursuant to a Plan of Reorganization
that is accepted by creditors and approved by the Court. We sincerely regret
any hardship this may cause.
We will do our best to keep you informed of significant
developments in
