Delphi Gets Tentative OK On $3B Loan From GM

Law360, New York (March 10, 2008, 12:00 AM EDT) -- Delphi Corp. will be allowed to incorporate $2.825 billion in promised loans from its former parent General Motors Corp. into its Chapter 11 exit financing, despite the contention of several investors that GM's increased involvement violates the reorganization plan.

Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York ruled Friday from the bench that GM's affiliates may enter into further agreement with Delphi without running afoul of the plan, according to Delphi.

“The bankruptcy court also observed that the...
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