Just take a passing glance at this chart of auto parts supplier Delphi (NYSE:DPH) and you'll see a Wall Street train wreck. The stock has been in decline since 1999, when General Motors (NYSE:GM) did an initial public offering of 17.7% of Delphi and then gave its remaining 80.1% to its shareholders in a spinoff.

GM Chairman and CEO John F. Smith Jr. said, "We believe that both companies will become stronger and more competitive in our respective businesses through focused growth, thus allowing us to better meet the needs of our customers, shareholders, and employees."

Delphi is set to report second-quarter results on Monday, but today it announced that it had drawn down $1.5 billion on its $1.8 billion revolving credit facility "in connection with financing operations in the context of Delphi's discussions with its principal unions and General Motors regarding a consensual restructuring of the Company's operations in the United States." Huh?

The drawdown comes on the heels of a Wall Street Journal interview with Delphi CEO Robert Miller in which it was said that restructuring talks with GM and the United Auto Workers were constructive and there was hope that the restructuring could be settled outside a courtroom. That sounds good, right?

But the drawdown has certainly already caught the attention of the credit raters at Fitch. They have lowered Delphi's senior unsecured debt to CCC (substantial risk) from B -- and the debt has a negative outlook, to boot. Fitch sees an implied heightened bankruptcy risk as the company enters its critical restructuring talks.

All of the talk about Delphi should leave GM shareholders worried. GM has guaranteed some benefits at Delphi, and it can ill afford to have Delphi go into bankruptcy court, which would result in the cancellation of parts supply contracts. GM is struggling to make money in cars as it is, although sales are booming thanks to rock-bottom pricing.

The spotlight will likely shift to Ford (NYSE:F) and its former in-house parts supplier Visteon (NYSE:VC) once the dust settles at Delphi. Visteon has been hemorrhaging money, too, and may use any GM/UAW settlement as a template for getting back to making money.

For those looking for investments in auto suppliers feeding the current new car production boom, consider Motley Fool Stock Advisor recommendation BorgWarner (NYSE:BWA) -- a maker of "highly engineered systems and components" for vehicle powertrain applications. BorgWarner is profitable and gushing free cash flow.

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Fool contributor W.D. Crotty does not own shares in any of the companies mentioned. Click here to see The Motley Fool's disclosure policy.