Delphi Technologies takes steps to conserve cash in the COVID-19 context
Delphi Technologies has been taking significant steps to conserve cash given the immediate impact on the business from the coronavirus pandemic. This includes working to access government support across our operating countries, effecting temporary layoffs, moving employees to part-time schedules and pay reductions throughout the organization, disciplined inventory management and active past dues collection.
Delphi Technologies also determined it was prudent and in the best interests of the company and its shareholders to draw down on its full 500 million USD revolving credit facility to best position the company to weather the current market conditions.
As a result of its decision to draw down on its revolver on March 30th, 2020, Delphi Technologies received notice from BorgWarner asserting that the company materially breached the Transaction Agreement between BorgWarner and the company as a result of drawing on the revolving credit facility without BorgWarner’s prior written consent and also asserting that, if such breach is not cured within 30 days, BorgWarner has the right to terminate the Transaction Agreement. Delphi Technologies disputes BorgWarner’s breach assertion on the basis that BorgWarner unreasonably withheld its consent.
At this time, Delphi Technologies intends to continue to negotiate with BorgWarner to resolve this matter.