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.