Delphi obtains court approval of agreement between subsidiary DAS, component supplier Valeo

By Reshmi Basu

New York, Oct. 25 - Delphi Corp. received approval Thursday of a settlement agreement between its subsidiary DAS LLC and Valeo Switches, and Detections Systems, Inc. and Valeo Electrical Systems, Inc. from the U.S. Bankruptcy Court for the Southern District of New York.

As reported earlier, prior to commencement of Delphi's Chapter 11 filings, DAS filed a lawsuit against automotive component supplier Valeo, alleging that the company sold it defective electrical switches.

Under the agreement, Valeo would give $4 million to DAS. In exchange, Valeo will be released from all actions, including claims, debts and liabilities.

DAS would also agree to indemnify Valeo.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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