From Detroit Free Press

DETROIT -- Delphi Corp. appears to be moving swiftly toward resolving its Chapter 11 bankruptcy case, having tackled union negotiations, a new financing plan and most recently settling a lawsuit from its employees and shareholders, the Detroit Free Press reported.

The company, which filed for Chapter 11 protection in October 2005, expects to file its reorganization plan before the end of the month and leave bankruptcy by the end of the year.

On Tuesday, the company asked a bankruptcy court judge for permission to hire a firm to handle votes from debt and equity holders on an upcoming reorganization plan. A hearing on that matter is slated for Sept. 14.

A federal judge gave preliminary approval Wednesday to a settlement in a lawsuit between Delphi Corp. and its shareholders and workers -- one that pays plaintiffs at least $341 million in new Delphi stock and cash from the company, insurers and underwriters.

Shareholders and Delphi employees enrolled in the company's stock plans sued the company in 2005 after Delphi said it found accounting irregularities dating back to its 1999 spin-off from General Motors Corp.

Shareholders who are eligible for a part of that settlement should receive mailings to pursue a payment in a few weeks.