Ahead of the Bell: Delphi, Appaloosa in court

NEW YORK - A bankruptcy judge will consider whether to allow Delphi Corp. to pursue a lawsuit against the Appaloosa Management hedge fund, which pulled out of a $2.55 billion investment deal to take an equity stake in the auto parts supplier. In its filing of the lawsuit, Delphi said its story with Appaloosa was one of "trust and betrayal." The investment plan had been a key pillar of the company's plan to exit bankruptcy. The supplier, which is the former parts-making unit of General Motors Corp., has been operating under court protection since October 2005. The other investors in the Appaloosa-led group are Harbinger Capital Partners Master Fund I Ltd., Merrill Lynch, Pierce, Fenner & Smith Inc., UBS Securities LLC, Pardus Capital Management LP and Goldman Sachs Group Inc. They are also named in... [read full story]