(RTTNews) - Transportation components supplier Delphi Corp.
(DPHIQ.PK) on Friday reported a wider net loss for the first quarter, along with a decline in revenues. The company also revealed the refinancing and extension of the terms of its Debtor-In-Possession or DIP Credit Facility.
Troy, Michigan-based Delphi reported a net loss of $589 million or $1.04 per share for the first quarter, compared to a net loss of $533 million or $0.95 per share reported for the same period last year.
The just concluded period includes $79 million of reorganization expenses for previously capitalized Equity Purchase and Commitment Agreement or EPCA fees expensed as a result of the EPCA termination. Delphi's financial results were also hurt by increased workforce transition program charges of about $42 million.
The company, which filed for bankruptcy protection in October 2005, reported revenues of $5.3 billion, a decline from $5.7 billion reported for the same period in the previous year. Non-GM revenue for the quarter rose to $3.6 billion from $3.5 billion. However, excluding the impact of foreign currency exchange rates, non-GM revenue decreased 4% from last year.
Delphi also disclosed the refinancing and extension of the terms of its DIP Credit Facility to December 31. The company noted that based on positive DIP lender participation and subject to court approval, it would increase the requested capacity of its DIP Credit Facility to $4.35 billion from the previously announced $4.1 billion. This will provide the company with about $250 million in additional liquidity.
Delphi also said GM has agreed to advance amounts anticipated to be paid to Delphi upon the effectiveness of the GM settlement and restructuring agreements.
The company also reaffirmed its commitment to funding and freezing at emergence its U.S. Hourly and Salaried Pension Plans. Delphi expects to meet its pension funding strategy through a combination of cash contributions and transfers of certain unfunded pension liabilities to a plan sponsored by GM, without the benefit of the previously issued pension funding waivers.
DPHIQ.PK is currently trading at $0.1050, down $0.0050 or 4.55% from the previous close, on 534,785 shares.
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