The loan would pay for costs Delphi is incurring that otherwise would have been paid for by GM, Delphi spokesman Lindsey Williams said. That hasn't happened because new agreements, negotiated by the parties and approved by the court, have not been executed yet.

 

'It's really an advance,' Williams said.

 

A GM spokeswoman could not be reached for comment.

 

A hearing is scheduled in federal bankruptcy court at 10 a.m. Aug. 26.

 

GM has its own liquidity concerns. In July, CEO Rick Wagoner outlined ways to boost GM's cash by $15 billion this year and next. Along with canceling its $1-a-share dividend, GM plans to raise $5 billion through asset sales and borrowing.

 

Delphi filed for bankruptcy protection in October 2005. In April, the supplier said it had met the conditions to emerge from Chapter 11 protection, including obtaining $6.1 billion of exit financing, but Delphi failed to emerge when its plan investors refused to take part, claiming the company breached its agreement.

 

The next month, Delphi sued the investors, including its largest shareholder, Appaloosa Management LP, seeking to force them to take part.

 

Delphi has been trying since then to find alternative financing.