Judge OKs Delphi Handover to Lenders

The Delphi Corp. in Troy, Mich., filed for bankruptcy protection Saturday.
A bankruptcy judge says Delphi can go forward with its plan to hand control of the company to its lenders and eventually end its nearly four-year stay in Chapter 11.

U.S. Judge Robert Drain approved the plan at a hearing Thursday in New York.

The approval paves the way for Delphi to soon emerge from bankruptcy protection. The auto supplier has set a target date of Aug. 31 and expects to be out of Chapter 11 by Sept. 30.

Nearly 2,000 objections - including about 1,400 from Delphi workers and retirees worried about the future of their pensions - were filed against the plan, but all of them were either resolved out of court or dismissed by Drain.

Delphi filed for Chapter 11 in October 2005.