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NEW YORK (AP) -- A bankruptcy judge on Tuesday approved a deal between auto supplier Delphi Corp. and its former parent, General Motors Corp., that settles warranty claims between the two and promises neither side will sue over them. The agreement over warranties is part of a master agreement that resolves all disputes between the two companies, including a lawsuit by Delphi to terminate supply contracts, claims related to Delphi's 1999 spin-off and how GM will be treated under Delphi's reorganization plan. Troy, Mich.-based Delphi got the approval of the warranty deal from U.S. Bankruptcy Judge Robert Drain in a written order. His approval comes a day before Delphi's hearing to seek approval of its disclosure statement, a document that will be sent to creditors along with the company's restructuring plan. If the judge approves the statement, Delphi can begin soliciting votes for the restructuring. Delphi has been in bankruptcy for nearly two years. It filed for court protection on Oct. 8, 2005. Reaching the master deal with General Motors in early September was crucial in Delphi's effort to exit bankruptcy, which has been hindered by difficult negotiations with both labor unions and the investors who are injecting $2.55 billion to help it emerge from bankruptcy.
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