Delphi Corp and GM News: new agreement

Delphi Corp. (OTC:DPHIQ) have been working closely with General Motors Corp. ( NYSE:GM) and the U.S. Treasury to try and reach a new agreement on how much support GM will offer Delphi. This is according to a company spokesperson.

Dayton Daily News reported that Appaloosa Management withdrew expected support for Delphi about a year ago after a hedge fund. Delphi is now bankrupt and has been relying on help from General Motors, who also have their own troubles. GM was Delphi’s former parent company and biggest customer.

The deadline agreement with GM passed last Friday, but there is still a five-day “grace period” in play before the lender start to take action. The three involved now have until Saturday to come up with a new deal.

If the deadline is not reached, the Delphi will have to face the possibility of liquidation.