NEW YORK -- Reuters reported today that Judge Robert Drain, the U.S bankruptcy judge handling Delphi Corp.’s Chapter 11 case, has delayed approval of the sale of Delphi’s steering business to General Motors, pending a review by the U.S. Treasury Dept.

The delay comes as a result of the U.S. Treasury Dept.’s concern that the sale could be considered a “material transaction” with respect to GM’s loan agreement with the government. According to the Reuters report, by accepting $13.4 billion in financial assistance from the government, GM has given the Treasury Dept. the right to review all large transactions. The Treasury Department wants to review the company’s cash flow before approving the deal.

The hearing has been postponed until April 2. In a separate motion, Drain agreed to extend the exclusivity period, which protects Delphi from creditors wishing to impose a restructuring on it, until July 31, according to Reuters.