Delphi wins court nod to freeze pension contributions-WSJ

Sept 24 (Reuters) - U.S. auto parts supplier Delphi Corp (DPHIQ.PK: Quote, Profile, Research, Stock Buzz) won court approval Tuesday to freeze contributions to its pension plans for hourly and salaried workers as part of its plan to exit bankruptcy protection, The Wall Street Journal said.

The company will provide workers with replacement plans based on defined contributions by Delphi, the paper said.

Judge Robert Drain of the U.S. bankruptcy court in Manhattan approved the request over an objection from the committee representing unsecured creditors, the paper said.

Delphi is also planning to ask Judge Drain to shift $3.4 billion in pension liabilities to General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz), according to the report.

The auto parts maker will freeze the pension plan for salaried workers on Sept. 30 and the plan for hourly workers as soon as an agreement can be reached with labor unions, according to the paper.

On a quarterly basis, the company said it will save $4 million by freezing the pension plan for hourly workers and $26 million by freezing the salaried plan, according to the Journal.

Delphi could not be immediately reached for comment. (Reporting by Ajay Kamalakaran in Bangalore; Editing by Lincoln Feast)

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