Auto parts maker Delphi Corp., a major employer in Niagara County, has reached an agreement with General Motors Corp. and investors on a revised plan to exit bankruptcy protection that includes $5.2 billion in financing, Delphi said in a statement.
The financing deal has no bearing on operations at the company's 2,100-job factory in Lockport, spokesman Lindsey Williams said.
An agreement with the United Auto Workers that provides for "buy-downs" of union workers had already received bankruptcy court approval, he said.
The buy-downs began Oct. 31, reducing senior workers' wages at Lockport and other plants by about 40 percent in return for lump-sum bonuses.
The new exit plan, details of which were expected to be filed Thursday in U.S. Bankruptcy Court in New York, is smaller than a plan unveiled Sept. 6, which called for $7.1 billion in net funded debt, Delphi said.
"Today's filings, which have been agreed upon by GM and all of our plan investors, are the cornerstones of a plan of reorganization that we believe can be achieved during this challenging capital markets environment," John Sheehan, Delphi's chief restructuring officer, said in a statement Thursday.
The plan's investment group is led by an affiliate of the private equity firm Appaloosa Management LP.
Delphi said in its statement that its creditors' committee opposes the amended plan, as does its equity committee. Delphi said it would continue to work toward consensus among its stakeholders, including the two committees.
Delphi, GM's former parts-making operation which was spun off as a separate company, filed for bankruptcy protection in October 2005. The company had hoped to emerge from Chapter 11 by the end of 2007, but because of the tight credit market, it now expects that to take place in the first quarter of next year.
Plants including Lockport will continue operating during the bankruptcy exit process, Williams said.