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Investor could delay Delphi's plans

Component manufacturer Delphi fears a withdrawal by a key investor could delay its plans to exit Chapter 11 bankrupty in America.

The US-based group is taking court action against equity investor Appaloosa Management, for pulling out of a $2.55bn (£1.3bn) investment deal.

Delphi has been in Chapter 11 bankruptcy protection for more than two years, and last year said it was confident of exiting bankruptcy.

Its plan is dependent on a $7bn injection from banks, plus a $2.55bn investment from a group led by Appaloosa.

But last month the group backed out. Delphi says the decision has hit its bankruptcy exit plans.

Delphi has filed an action with the US Bankruptcy Court in New York, asking its to order the investor group to provide up to $2.55bn in funding.

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