BREE FOWLER

The Associated Press

Judge approves Delphi lender bid, 1st Ld, APFN

Judge approves Delphi lender bid

BREE FOWLER

The Associated Press

NEW YORK

NEW YORK (AP) -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.