New York – A bankruptcy judge said Tuesday he will approve the bankruptcy exit plan of auto parts supplier Delphi once it drastically reduces the total payout of cash bonuses to top executives. Delphi operates three plants in Alabama.
The company's plan is a reorganization blueprint that largely shifts its manufacturing to cheaper overseas plants and eliminates tens of thousands of union jobs in the U.S.
Delphi hopes to emerge from court protection before the end of March but must first secure exit financing in a tough credit market.
The United Auto Workers union argued the compensation plan was unfair to union workers, many of whom took early retirement or buyout offers in order to help the company get out of bankruptcy.
Delphi supplies some of the world's biggest automakers, including General Motors, Ford, Volkswagen and Hyundai.