Delphi Corp, one of the world's largest automotive parts manufacturers, announced increase of its first-quarter net loss.
The loss grew up to $589 million, or $1.04 per share, from $533 million, or 95 cents per share, a year earlier. The company’s revenue decreased to $5.3 billion from $5.7 billion.
The loss resulted from significant price reductions on parts supplied to major customer and former parent General Motors Corp.
In 2005 Delphi filed for Chapter 11 bankruptcy protection to reorganize its struggling U.S. operations. As a result of this action, the Securities and Exchange Commission granted an application by the New York Stock Exchange to delist Delphi's common stock and bonds. The company now works on its reorganization plan.
Since bankruptcy petition Delphi has cut thousands of jobs, closed the majority of plants in the U.S.
The company failed to emerge from bankruptcy by mid April, thus setting aside its equity plan - $6.1 billion exit financing deal.
Delphi negotiated new debtor-in-possession financing that extends through 2008 to complete the reorganization.