Delphi bankruptcy plan may be in jeopardy: report

NEW YORK (Reuters) - The $6.1 billion plan to bring auto-parts supplier Delphi Corp (DPHIQ.PK: Quote, Profile, Research, Stock Buzz) out of bankruptcy protection may be in jeopardy as bank lenders face trouble syndicating loans to other lenders, the Wall Street Journal said, citing people familiar with the matter.

Delphi's chief lenders, JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and Citigroup Inc's (C.N: Quote, Profile, Research, Stock Buzz) Citigroup Global Markets, are finding it difficult to syndicate the loans and hedge funds and other investors also are balking at the terms, the Wall Street Journal said on its Web site on Tuesday. The investors say the loans aren't priced appropriately for the risk involved, the Journal said.

Delphi's former parent, General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) may need to provide financing, the Journal said.

Delphi's situation underscores the current credit markets, where banks are unwilling to provide financing and investors are leery of the paper that does make it to market, the Wall Street Journal said.

JPMorgan, Citigroup and Delphi could not be reached for comment.

(Editing by Carol Bishopric)