This hasn't been a banner year for embattled supplier Delphi Corp. Its biggest customer, General Motors, is losing market share by the day. And six Delphi officers have resigned in the aftermath of an accounting scandal that is being investigated by the Securities and Exchange Commission. As if that weren't enough, Delphi also saw its credit rating slashed to junk status.
So there was a palpable sense of relief in Troy, Mich., last week when Delphi wrapped up a $2.8 billion refinancing package, including a $1.8 billion revolving line of credit and a $1 billion secured loan. Delphi also contributed an additional $475 million to fund its U.S. pension plan, meeting its minimum requirements for 2005.
John Sheehan, Delphi's acting CFO, said in a statement: "We achieved what we set out to accomplish in securing a financing deal that will provide us the liquidity and flexibility to continue our transformation."