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Reorganization
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 U.S. which Delphi does not plan to repatriate to fund U.S. operations. These funds will support its global operations outside the U.S. and help assure the continued adequacy of working capital throughout its global business units.
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 Delphi's reorganization and this site will be updated regularly. Our supplier support center information line can be reached at +1 866-688-8679 or +1 248-813-2601.
