Auto parts supplier Delphi Corp.,which failed in its first attempt to get $6.1 billion in bankruptcyexit loans, announced Monday that it would try again.

Findingsuch financing became tough as defaults have risen on U.S. subprimemortgages and the value of securities backed by such loans hasplummeted, forcing big writedowns at major financial companies.Thistime around, Delphi launched the effort to get exit financing with helpfrom its former parent, General Motors Corp. GM is allowed to offer asmuch as $750 million in loans under the company's reorganization plan.

On Friday, a judge ruled that a GM affiliate, but not GM itself, could offer two other loans, one of $2 billion and a second loan worthas much as $825 million."Although certain of the investorscontinue to object to the proposed exit financing, Delphi believes itsproposed exit financing is consistent with the court's guidance andpreviously issued confirmation order," Delphi said in a statementissued Monday.

GM spokeswoman Renee Rashid-Merem said the companyis not naming the affiliate involved in the Delphi financing until thefinal details have been worked out.Five of six investors whowill inject as much as $2.55 billion in return for equity in thereorganized company objected to GM's increased participation in theloans package.

The investors, led by Appaloosa Management LP, objectedover concerns about GM expanding its influence over Delphi, which wasits parts subsidiary until 1999 and still its biggest supplier.

The loans would "adversely affect the company and the investors bymaterially increasing and concentrating GM's ongoing influence andcontrol," they said.The other four investors who objected areHarbinger Capital Partners Master Fund I Ltd.; Merrill Lynch, Pierce,Fenner and Smith Inc.; UBS Securities LLC, and Pardus CapitalManagement LP.Goldman Sachs Group Inc. is a sixth member of the investor group but did not object.

Delphi'sefforts to get loans have been hampered by a part of the deal withAppaloosa that limits the amount of interest income Delphi can pay in2008 to $585 million. GM had said it would agree to a variable interestrate to help Delphi meet the requirement.

Delphi also plans thisweek to file a registration statement with the Securities and ExchangeCommission and launch its rights offering for new shares in the company.The company has been in bankruptcy since October 2005 and now faces an April 4 deadline to secure the loans it needs.