DETROIT - Delphi Corp. said Friday that it would pay its vendors as scheduled on Tuesday, Oct. 4, and that it had more than $1.6 billion in cash at the end of the third quarter.
Vendors to Delphi have been concerned about being paid, and this is a positive message to them, said Claudia Baucus, Delphi's manager of financial communications.
Delphi CEO Steve Miller has said the supplier will file for Chapter 11 bankruptcy protection by Oct. 17 unless the company gets financial support from General Motors and concessions from the UAW to help cut labor and pension costs.
Automotive News reported last week that Delphi would owe its 2,000 U.S. suppliers as much as $1.9 billion for parts already delivered if it entered Chapter 11.
Delphi also said in a news release that it had missed a payment on $1.5 billion that it had borrowed on its line of credit. The company said it has a 30-day grace period on the payment, and that it would seek adjustments to the loan provisions.