Delphi cancels deal with investors

Delphi Corp. said it had scrapped its agreement with a group of investors that was going to kick in as much as $3.4 billion to help the struggling auto parts maker emerge from bankruptcy protection.

But a spokesman for the company said that a revised agreement was expected this month and that the move to end the agreement was due to one of the investors, Cerberus Capital Management, pulling out of the deal.

Ending the accord is not expected to stop the company from getting out of Chapter 11 by the end of the year, Delphi spokesman Lindsey Williams said.