Delphi to drop pensions

Posted on Thursday, July 30th, 2009 at 2:21 PM EDT.

A U.S. bankruptcy judge gave Delphi Corp. the go-ahead to abandon its pension obligations, bringing the supplier another step closer to exiting bankruptcy, the The Detroit News reported.

The Troy, Mich.-based auto supplier was poised to win approval from a bankruptcy court judge as early as today, the paper said. U.S. Bankruptcy Judge Robert Drain denied objections from more than 1,000 retirees and three small unions to Delphi’s plan to end its pension obligations, the News said.

Drain said he wouldn’t make a final ruling until Thursday morning on approving the revised plan, the paper said. Drain said late Wednesday that Delphi had “exercised valid business judgment” in formulating its revised bankruptcy exit plan, the story said. (The Detroit News)

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