DETROIT -- Delphi Corp. will approach many suppliers soon with a proposal to pay for parts delivered before Delphi filed for protection from creditors in federal bankruptcy court. The company is offering to pay up to 75 percent of its pre-Chapter 11 debt over six quarters. As part of the deal, Delphi will ask the suppliers to extend Delphi's contracts for two years. U.S. Bankruptcy Judge Robert Drain gave Delphi the approval last week to make the offers.
Delphi said it has about 8,000 single-source contracts that it needs to extend to prevent production shutdowns.
Delphi filed for Chapter 11 reorganization in October.