The judge presiding over Delphi’s Chapter 11 case has given the parts supplier permission to move forward with a lawsuit against Appaloosa Management. Delphi is alleging that the hedge fund did not intend to follow through on its $2.55 billion equity investment that it unexpectedly pulled out of in April, which caused further delay in Delphi’s emergence from bankruptcy.

Delphi is pursuing the litigation in the hopes of forcing the investor group that Appaloosa is leading to make good on a commitment to recapitalize Delphi, according to a report from TheDeal.com