Updated from 12:45 p.m.

Delphi ( DPHIQ) got bankruptcy court approval to use up to $950 million of its $2 billion senior secured debtor-in-possession financing.

The Troy, Mich., auto parts company also said the U.S. Bankruptcy Court in New York cleared the use of $2.5 billion in pre-petition secured revolver and term loan facilities. The company will use that money and cash on hand to fund post-petition operating expenses, including its supplier obligations and employee wages, salaries and benefits.

"We are pleased with the approval by the Bankruptcy Court of our 'first-day motions,' which, taken together, will enable Delphi to operate globally without interruption and meet normal business obligations," said CEO Steve Miller. "With our first-day motions approved, we can now direct our focus on reducing our U.S. legacy costs and continuing to implement our transformation plan. We are determined to do what it takes to make our U.S. businesses competitive."

The Bankruptcy Court has scheduled a final hearing on any first-day orders approved on an interim basis as part of the calendar for the company's first monthly omnibus hearing on Oct. 27, Delphi said.

Delphi filed for Chapter 11 bankruptcy protection Saturday, citing a need to slash runaway labor and benefit costs. Delphi filed to reorganize its U.S. operations in federal bankruptcy court in New York, where hearings are scheduled to begin this week.

Delphi, which lost almost $5 billion last year and had been negotiating for months for labor concessions with the United Auto Workers union, expects to continue operating with $4.5 billion of post-petition financing and said it expects to reorganize over two years.

Delphi employed roughly 185,200 people worldwide at the end of 2004, including 147,900 hourly workers. About 75% of hourly workers were represented by the union, including 25,200 in the U.S. by the UAW. Delphi provides about half of GM's ( GM) parts, making it by far the automaker's biggest supplier.

GM has said Delphi's filing probably doesn't trigger any immediate liability for the No. 1 U.S. automaker. But it could create obligations of as much as $11 billion if various pension guarantees were enforced. GM, which spun off Delphi in 1999, says it's too early to tell how big a bill it could face.

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