U.S. auto-parts maker BorgWarner Inc. on March 31 accused Delphi Technologies PLC of breaching the terms of their $3.3 billion merger by drawing down a debt facility, putting the deal in jeopardy.

Shares of Delphi sank 23.4% to $7.90 in early trading after BorgWarner said the company's drawdown in full of a $500 million revolving facility materially breached their agreement. BorgWarner added that it has the right to terminate the deal if Delphi fails to resolve the breach within 30 days.

Powertrain-maker Delphi in response said BorgWarner "unreasonably withheld its consent" to the withdrawal, which formed part of Delphi's efforts to mitigate the effects of the coronavirus outbreak. It said it would negotiate with BorgWarner to resolve the matter.

Both companies said they continue to believe in the long-term strategic value of the deal and are working toward closing the transaction in the second half of 2020.

Shares of BorgWarner were up 3.2% to $25.36 in morning trading.

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