A New York bankruptcy court judge on Thursday gave Delphi Corp. management another six months to exclusively develop a reorganization plan.
The auto parts supplier now has until Aug. 5 to file a plan to emerge from bankruptcy. The exclusivity period was set to expire in February. A vote by all creditors to approve this plan also has been pushed backed until Oct. 4.
Delphi, which declared bankruptcy in October, expects to emerge from bankruptcy by 2007.
The exclusivity period allows a company to formulate its reorganization plans without rival plans from creditors or other interested parties. An extension is not unusual for large bankruptcy cases, and the creditors committee and an agent representing lenders of $4.5 billion did not object.
Delphi has delayed until later this month a request to approve its executives' incentive and compensation plans, which have drawn fire from union workers. Delphi also is working with a creditors committee on cash and stock awards.
The Troy, Mich.-based auto parts maker also received court approval Thursday to limit buying and selling of Delphi stock that could significantly change ownership of the company and its tax status, and possibly hurt its emergence from bankruptcy.
Much of the debate in Thursday's hearing was focused on a request by attorneys representing investors suing Delphi to obtain documents related to an internal probe of the auto parts maker's accounting practices. Attorneys for the investors said the paperwork was needed for their suit, and attorneys for Delphi as well as the creditor's committee said the request was onerous.
Judge Robert Drain said investors suing Delphi Corp. must ask a judge in Michigan for permission to get documents from the New York court for their case.
He also gave Delphi approval to renew its insurance coverage and to renew or reject leases on commercial real estate.
Delphi filed for Chapter 11 bankruptcy protection in October after failing to reach a restructuring agreement with the United Auto Workers and General Motors Corp., its former parent. Delphi, incorporated in 1998 as a GM subsidiary, began operating as a separate entity in 1999, but General Motors is still its single largest customer.
In the two years after its separation from GM, Delphi had $2 billion in net income. But every year afterward _ other than 2002 _ Delphi lost money. In the first half of 2005, Delphi had a net loss of $608 million on sales of $13.9 billion.