DETROIT, Sept 10 (Reuters) - Delphi Corp DPHIQ.PK said on Monday it asked the bankruptcy court for approval to enter a warranty, settlement and release agreement with General Motors Corp (GM.N) to settle some warranty claims.
Under the terms of the deal, bankrupt auto parts supplier Delphi would pay GM about $200 million, including $130 million in cash over time and up to about $70 million to be paid in the form of delivery of replacement products to GM.
In a filing with the Securities and Exchange Commission, Delphi said the agreement would settle all outstanding warranty claims by GM, which as of Aug. 10, 2007, are believed by GM to be Delphi’s responsibility, and are in GM’s normal investigation process.
Delphi said the deal would also settle claims that should have been within GM’s investigation process, but were withheld for pursuing a claim against Delphi. (Reporting by Jui Chakravorty)