Delphi Corp. today announced that it has accepted a proposal for an equity purchase of up to $3.4 billion from an investment group.

The money, available on a conditional basis, would be used to support the company’s restructuring efforts. The company has been under Chapter 11 bankruptcy protection since October 2005. Delphi is the principal supplier to General Motors.

The investment group making the proposal consists of affiliates of Appaloosa Management LP, Cerberus Capital Management LP, Harbinger Capital Partners Master Fund I Ltd., Merrill Lynch & Co. and USB Securities LLC.

In late March, the company’s announcement that it intended to cut wages prompted strike threats by the UAW. The fates of Delphi and GM, itself struggling to be profitable, are intertwined, which was apparent when GM chairman & CEO Rick Wagoner told CBS News’ Face the Nation that the auto giant wouldn’t be able to keep its factory lines running “for a significant period of time” without Delphi..

Receiving the full $3.4 billion is subject to Delphi’s progress entering into comprehensive agreements with GM and its labor unions—an issue where there are “significant differences of views.”

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