A federal judge has allowed bankrupt Delphi to use $250m in funding from General Motors for support until it can emerge from bankruptcy.
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Delphi, in bankruptcy since 2005, said earlier in June it had reached a deal to sell most of its global operations to private equity firm Platinum Equity, Reuters noted.
Drain also allowed Delphi to end its use of the services of consulting firm Deloitte & Touche.
GM has booked more than US$11bn of charges to help reorganise one of its key suppliers.
GM, also in bankruptcy, received court approval at a hearing earlier in June to continue providing support to suppliers.
Delphi said in a statement the latest court order allows other potential buyers to submit a binding offer for the until a court hearing set for 23 July.
“Thus, the alternative transaction process maintains the emergence timing contemplated under Delphi’s agreement with Platinum and GM,” it said.
