Tight Credit Market Threatens Delphi's Exit Financing

Law360, New York (February 13, 2008, 12:00 AM EST) -- Delphi Corp.'s bankruptcy exit plan, approved just two weeks ago, is now threatened by conditions in the credit market as the company's principal lenders reportedly find it difficult to syndicate a $6.1 million exit financing loan.

The principal lenders, Goldman Sachs and Citigroup, have so far not been able to obtain loans at the rate called for by Delphi's Chapter 11 plan, according anonymous people familiar with the company's bankruptcy proceeding, the Wall Street Journal reported Wednesday.

Delphi spokesman Lindsey Williams would confirm only that the...
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