Nov. 17 (Bloomberg) -- Delphi Corp., General Motors Corp.'s former parts unit, said it's discussing changes to a planned $4.35 billion loan to help it fund operations in bankruptcy.

Delphi said in a filing with the U.S. Securities and Exchange Commission today that it may modify a current agreement with lenders to add provisions on repatriation of dividends from foreign operations, new borrowing limits and a requirement to use any money from settlements to pay former investors.

Delphi also said General Motors agreed to extend an agreement that will the supplier $300 million in liquidity and change terms of payments Delphi owed to the carmaker to give Delphi another $100 million in liquidity. Delphi said it plans to change the timing on its spending, resulting in a capital expenditure of $282 million in the second half of 2008 and $300 million in the first half of 2009.

Talks with lenders, to occur later today, will focus on new financial information about the partsmaker, including projected earnings and revenue, Delphi said.

For 2008, Delphi now sees earnings of $592 million, up from $526 million. The change stems from a new treatment of its restructuring agreement with GM that gives it an increase of $373 million, decreased expenses from compensation, material cost reductions of $17 million and performance and other related improvements of $29 million, including delaying ``certain restructuring initiatives.''

20 Percent Reduction

Delphi said it expects a 20 percent reduction in domestic vehicle production and a 15 percent reduction in overseas output. Accounting for changes in the price of commodities like oil, copper and steel, Delphi foresees a decrease in projected 2008 revenue from $22.2 million to $21.3 million. In the first half of 2009, it expects a decrease from $9.6 million to $9.1 million.

Delphi, based in Troy, Michigan, is struggling to emerge from a bankruptcy case that began in 2005, and has said it could be forced to liquidate U.S. operations if GM also seeks bankruptcy. Delphi is relying on Detroit-based GM to contribute about $10.6 billion to its restructuring by assuming pensions and amending contracts.

The case is In re Delphi Corp., 05-44481, U.S. Bankruptcy Court, Southern District New York (Manhattan).

To contact the reporter on this story: Tiffany Kary in New York at tkary@bloomberg.net.

Last Updated: November 17, 2008 15:31 EST