Saying it needs ''immediate and significant actions," auto parts maker Delphi Corp. filed a motion in bankruptcy court Wednesday asking permission to terminate certain salaried employee benefit plans and programs after March 31.
The company stressed it doesn't want to modify or terminate existing medical and insurance benefits of current salaried workers before they retire.
The motion is part of efforts to ''improve cash flow and restructure the company's balance sheet during dramatic and unprecedented'' slowdowns in orders from automaker customers, plus difficulties in borrowing during a credit crisis, the company said.
''We believe these changes are necessary to emerge from Chapter 11 and maintain a viable global business now and in the future,'' Delphi spokesman Lindsey Williams said.
Delphi said it provides medical and insurance benefits to about 15,000 eligible salaried retirees, including thousands from the local Delphi Packard Electric division, at a cost of more than $70 million annually.
An April 1 shutoff would save the company $200 million from 2009 through 2011, as well as eliminate balance sheet liabilities in excess of $1 billion, better positioning the company to exit Chapter 11 bankruptcy, which it entered Oct. 8, 2005, the company said.
Meanwhile, Delphi said it has agreed to change some financial terms of its debtor-in-possession financing so it can preserve cash as the auto industry continues to sag.
The former parts division of General Motors Corp. said in a regulatory filing that it has agreed with lenders on changes to its pay-down requirements.
GM said it will speed up $50 million in payments to Delphi as part of its agreement that calls for the automaker and Delphi's former parent to provide $300 million through June 30.