Delphi insists filing for Chapter 11 bankruptcy will not affect the pensions of former staff of its UK operation.

The parts giant, with $29bn (£16.6bn) turnover, posted a $741m (£423m) loss in the first half of 2005. It has sought court protection from creditors under the US Bankruptcy Code while it undertakes a reorganization programme. The move came after it failed to secure concessions from its unions and financial support from General Motors, its biggest customer and former owner.

The Chapter 11 filing applies only to its US operations. Steve Miller, Delphi’s chairman and chief executive, assures customers that worldwide operations will “continue without disruption”.

The company’s restructuring plan is likely to include 66% pay cuts for its US workers, who receive an average package worth $65 (£37) per hour.