EX-99.C
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k47045exv99wc.htm
EX-99(C)
Exhibit 99(c)
EXECUTION COPY
PARTIAL TEMPORARY ACCELERATED PAYMENT AGREEMENT
THIS
PARTIAL TEMPORARY ACCELERATED PAYMENT AGREEMENT (this “Agreement”), is dated as
of December 12, 2008, by and between Delphi Corporation (“Delphi”), on behalf of itself
and its subsidiaries and Affiliates operating as debtors and debtors in possession in the Chapter
11 Cases (together with Delphi, the “Debtors”), and General Motors Corporation
(“GM”).
WHEREAS, Delphi, the Debtors and GM have entered into that certain Agreement, dated as of May
9, 2008, as amended by that certain Amendment No. 1 dated October 6, 2008, and as further amended
by that certain Amendment No. 2 dated December 12, 2008 (the “GM-Delphi Agreement”);
WHEREAS, GM and Delphi, on behalf of itself and the Debtors, have entered into that certain
Amended and Restated Global Settlement Agreement, dated September 12, 2008 (the “Global
Settlement Agreement”);
WHEREAS, GM and Delphi, on behalf of itself and the Debtors, have entered into that certain
Amended and Restated Master Restructuring Agreement, dated September 12, 2008, which is attached as
an exhibit to the Global Settlement Agreement (the “Master Restructuring Agreement”);
WHEREAS, on September 26, 2008, the United States Bankruptcy Court for the Southern District
of New York entered an order approving the Global Settlement Agreement and the Master Restructuring
Agreement;
WHEREAS, in connection with the GM-Delphi Agreement, the Master Restructuring Agreement and
the Global Settlement Agreement, Delphi has requested and, subject to the terms and conditions set
forth herein, GM has agreed, among other things, to make certain accelerated payments to Delphi as
described in this Agreement;
NOW, THEREFORE, in consideration of the mutual promises, agreements, and covenants contained
herein, each of the parties hereto hereby agrees as follows:
| | (a) | | “Acceleration Conditions” shall mean (A) the GM-Delphi Agreement remains in
effect and the Tranche B Termination Date has not occurred, (B) all conditions set
forth in Section 4.03 (other than Section 4.03(a)) of the GM-Delphi Agreement have been
satisfied, (C) at least $100,000,000 has been drawn and remains outstanding under the
GM-Delphi Agreement on the applicable Test Date, and (D) the MRA Consummation Date has
not occurred. |
| |
| | (b) | | “DAS” shall mean Delphi Automotive Systems LLC, a Delaware limited liability
company. |
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| | (c) | | “MRA Consummation Date”, “Component Part”, “GMNA” and “GMSPO” shall each have
the respective meanings set forth for such terms in the Master Restructuring Agreement. |
| |
| | (d) | | “MNS-2” shall mean GM’s Multilateral Netting System. |
| |
| | (e) | | “Test Date” shall mean the Thursday before the date on which a Pull-Forward
Payment is payable under this Agreement. |
| |
| | (f) | | “Tranche B Obligations” shall have the meaning set forth in the GM-Delphi
Agreement. |
| |
| | (g) | | “Tranche B Termination Date” shall have the meaning set forth in the GM-Delphi
Agreement. |
| 2. | | Conditions Precedent to Effectiveness. This Agreement will become effective on the
date (the “Effective Date”) on which (a) all of the conditions precedent set forth in
Section 3 of Amendment No. 2 to the GM-Delphi Agreement dated December 12, 2008 between GM,
Delphi, and certain subsidiaries of Delphi have been satisfied or waived in accordance with
the terms thereof, and (b) the Bankruptcy Court shall have entered an order approving this
Agreement, which order shall be in form and substance acceptable to GM, and such order shall
have become final and non-appealable unless otherwise agreed upon by the parties in writing. |
| |
| 3. | | Temporary Acceleration of Payment Terms. |
| | (a) | | Pull-Forward Payments. |
(i) Provided that the Acceleration Conditions are satisfied, on the date in March 2009
that GM makes its March 2009 MNS-2 payment to DAS (or, if later, the first date the
Acceleration Conditions are satisfied that is either the 15th date of a month prior to July
2009 or the MNS-2 payment date in a month prior to July 2009), GM will make a payment to DAS
of $100,000,000 (in addition to its otherwise scheduled payments on the applicable date)
representing a partial temporary acceleration of accounts payable to DAS for Component Parts
supplied to GMNA and GMSPO by DAS (the “First Pull-Forward Payment”) with the effect
of decreasing the GM payables to DAS by the amount paid.
(ii) Provided that the Acceleration Conditions are satisfied, on the date in April 2009
that GM makes its April 2009 MNS-2 payment to DAS (or, if later, the first date the
Acceleration Conditions are satisfied that is either the 15th date of a month prior to July
2009 or the MNS-2 payment date in a month prior to July 2009), GM will make an additional
payment to DAS of $100,000,000 (in addition to its otherwise scheduled payments on the
applicable date and without regard to any payment previously paid or then due under clause
(i) above) representing a partial temporary acceleration of accounts payable to DAS for
Component Parts supplied to GMNA and GMSPO by DAS (the “Second Pull-Forward
Payment”) with the effect of decreasing the GM payables to DAS by the amount paid.
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(iii) Provided that the Acceleration Conditions are satisfied, on the day following the
date in May 2009 that GM makes its May 2009 MNS-2 payment to DAS (or, if later, the first
date the Acceleration Conditions are satisfied that is either the 15th date of a month prior
to July 2009 or the MNS-2 payment date in a month prior to July 2009), GM will make an
additional payment to DAS of $100,000,000 (in addition to its otherwise scheduled payments
on the applicable date and without regard to any payment previously paid or then due under
clauses (i) or (ii) above) representing a partial temporary acceleration of accounts payable
to DAS for Component Parts supplied to GMNA and GMSPO by DAS (the “Third Pull-Forward
Payment”) with the effect of decreasing the GM payables to DAS by the amount paid. As
used herein the term “Pull-Forward Payments” means the aggregate amount of the First
Pull-Forward Payment, the Second Pull-Forward Payment and the Third Pull-Forward Payment
paid by GM to DAS.
| | (b) | | Pull-Forward Recovery. |
(i) If, on the Tranche B Termination Date, provided that such Tranche B Termination
Date does not occur as a result of the occurrence of the MRA Consummation Date (which is
addressed in section 3(c) below), the outstanding balance of the Tranche B Obligations is
less than $300,000,000, a portion of the outstanding balance of Pull-Forward Payments, if
any, in an amount up to the difference between (x) $300,000,000 and (y) the outstanding
balance of the Tranche B Obligations, will be deemed to be advances under the GM-Delphi
Agreement, with the outstanding balances of the Tranche B Obligations and the Pull-Forward
Payments adjusted accordingly. For example, if, on the Tranche B Termination Date, the
outstanding balance of the Tranche B Obligations is $200,000,000, and the outstanding
balance of Pull-Forward Payments is $200,000,000, $100,000,000 of Pull-Forward Payments will
be deemed to be advances under the GM-Delphi Agreement, increasing the balance of the
Tranche B Obligations to $300,000,000 and reducing the balance of the Pull-Forward Payments
to $100,000,000. Likewise, if, on the Tranche B Termination Date, the outstanding balance
of the Tranche B Obligations is $100,000,000, and the outstanding balance of Pull-Forward
Payments is $100,000,000, $100,000,000 of Pull-Forward Payments will be deemed to be
advances under the GM-Delphi Agreement, increasing the balance of the Tranche B Obligations
to $200,000,000 and reducing the balance of Pull-Forward Payments to $-0-.
(ii) Provided that (A) the MRA Consummation Date has not occurred, and (B) there
remains a balance of Pull-Forward Payments made by GM to DAS after giving effect to clause
(i) above, GM will offset the remaining balance of Pull-Forward Payments, in an amount not
to exceed $100,000,000, from its first MNS-2 payment to DAS following the Tranche B
Termination Date (or subsequent MNS-2 payments to DAS), or on the Tranche B Termination Date
if the Tranche B Termination Date falls on an MNS-2 payment date, with the effect of
increasing the GM payables to DAS by the amount so offset.
(iii) Provided that (A) the MRA Consummation Date has not occurred, and (B) there
remains a balance of Pull-Forward Payments made by GM to DAS after giving effect to clause
(i) above, GM will offset the remaining balance of Pull-Forward Payments, in an amount not
to exceed $100,000,000, from its second MNS-2 payment to
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DAS following the Tranche B Termination Date (or subsequent MNS-2 payments to DAS) with
the effect of increasing the GM payables to DAS by the amount so offset.
(iv) Provided that (A) the MRA Consummation Date has not occurred, and (B) there
remains a balance of Pull-Forward Payments made by GM to DAS after giving effect to clause
(i) above, GM will offset the remaining balance of Pull-Forward Payments from its third
MNS-2 payment to DAS following the Tranche B Termination Date (or subsequent MNS-2 payments
to DAS) with the effect of increasing the GM payables to DAS by the amount so offset.
(c) Upon the MRA Consummation Date, to the extent the Pull-Forward Payments have not been
fully recovered by GM under Subsections 3(a)(iv), (v), or (vi) above, GM will offset the remaining
balance of Pull-Forward Payments, if any, against its accounts payable to DAS simultaneously with
giving effect to Section 3.13 of the Master Restructuring Agreement. Thereafter, the terms and
conditions of the Master Restructuring Agreement shall govern the respective rights and obligations
of the parties hereto in connection with accelerated payment terms with respect to Component Parts
supplied to GMNA and GMSPO by DAS and the partial temporary acceleration of payment terms under
this Agreement shall cease.
| 4. | | Notices. (a) Subject to paragraph (b) below, all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy, as follows: |
(i) if to Delphi, to it at 0000 Xxxxxx Xxxxx, Xxxx, Xxxxxxxx 00000, Attention:
Treasurer (Telecopy No. 000-000-0000; Telephone No. 000-000-0000; with a copy to Deputy
General Counsel, Transactional and Restructuring (Telecopy No. 000-000-0000; Telephone No.
000-000-0000); and
(ii) if to GM, to it at 000 Xxxxx Xxxxxx, 00xx xxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Treasurer, with a copy to General Motors Corporation, 000 Xxxxx Xxxxxx, 00xx
xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Director, Business Development.
(b) GM or Delphi may, in its discretion, agree to accept notices and other communications to
it hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications. Any party
hereto may change its address or telecopy number for notices and other communications hereunder by
notice to the other parties hereto. All notices and other communications given to any party hereto
in accordance with the provisions of this Agreement shall be deemed to have been given on the date
of receipt.
| 5. | | Successors and Assigns. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that no party hereto may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the parties hereto (and
any attempted assignment or transfer without such consent shall be null and void). |
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| 6. | | CHOICE OF LAW. THIS AGREEMENT SHALL IN ALL RESPECTS BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND (TO THE EXTENT APPLICABLE) THE
BANKRUPTCY CODE. |
| |
| 7. | | No Waiver. No failure on the part of any party to exercise, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided by law. |
| |
| 8. | | Amendments, etc. No modification, amendment or waiver of any provision of this
Agreement, and no consent to any departure by the party herefrom, shall in any event be
effective unless the same shall be in writing and signed by all of the parties hereto, and
then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No notice to or demand on any party shall entitle such party to any
other or further notice or demand in the same, similar or other circumstances. No amendment to
this Agreement shall be effective against any party unless signed by the such party, as the
case may be. |
| |
| 9. | | Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof, and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction. |
| |
| 10. | | Execution in Counterparts; Integration; Effectiveness. This Agreement may be executed
in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and the GM-Delphi Agreement constitute the entire contract among the
parties relating to the subject matter hereof and, except as specifically provided for herein,
supersedes any and all previous agreements and understandings, oral or written, relating to
the subject matter hereof, provided however, that this Agreement does not amend or supersede
the terms of the Master Restructuring Agreement or the Global Settlement Agreement. This
Agreement shall become effective on the Effective Date, and thereafter shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy or in
“pdf” or similar format by electronic mail shall be effective as delivery of a manually
executed counterpart of this Agreement. |
| |
| 11. | | WAIVER OF JURY TRIAL. EACH OF DELPHI, THE DEBTORS AND GM HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO THIS AGREEMENT. |
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their
respective officers thereunto duly authorized, all as of the date first written above.
| | | | | | | | | | | | | |
| DELPHI CORPORATION, | | | | GENERAL MOTORS CORPORATION |
| including on behalf of its Debtor subsidiaries | | | | | | | | |
| and Debtor Affiliates | | | | | | | | |
|
| | | | | | | | | | | | |
| By: | | /s/ Xxxx X. Xxxxxxx | | | | By: | | /s/ Xxxxxx X. Xxxxx |
| | | | | | | | | |
|
| | Name:
| | Xxxx X. Xxxxxxx
| | | | | | Name:
| | Xxxxxx X. Xxxxx |
|
| | Title:
| | Vice President, Chief
| | | | | | Title:
| | Treasurer |
|
| | | | Financial Officer | | | | | | | | |
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