Judge rules Delphi can cancel salaried retiree health benefits - Business First of Buffalo:

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The move will eliminater benefits as early as April 1for 15,000 people, includinfg those in the Dayton area. The Mich.-based auto parts supplier, which has been operating under Chaptetr 11 bankruptcy protection sinceOctober 2005, said ridding itselfr of the insurance costsa will save it more than $70 million Judge Robert Drain, who issued his rulinf less than three weeks after the company filedc its request to drop the coverage, commented that Delphi will save $1.5 milliom a week, the Detroit News reported. Garr Graber, a Buffalo lawyer who specializese in Chapter 11 bankruputcy lawfor , said the judge’s decision can be appealed but such appeals are seldo m successful.
Graber, speaking before the ruling was expected the judge to order a modification of the coverage rather thanoutrighr cancellation. “Ultimately the judge will have to consider whetheer or not thedebtor - Delphki - can reorganize and/or survive withou a modification of its retiree benefits,” he said. “That’s reallyg the question: Can the company survive?”