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Troubled automotive components group Delphi has agreed a further $2.55 billion investment with a consortium of investors led by the private equity firm Appaloosa.

Delphi hailed the deal as further progress towards its emergence from the Chapter 11 order that protects it from being made bankrupt under US law. Chief restructuring officer John Sheehan said the group aimed to publish its full reorganisation plans in the third quarter of 2007 and to be released from Chapter 11 by the end of the year.

Under the new agreement, Appaloosa and its partners will buy $800 million of convertible preferred stock and about $175 million of common stock in the reorganised company.

They will also commit to buy any unsubscribed shares from a rights issue of around $1.6 billion that will be made available to existing common stockholders.

Delphi is this week expecting court approval for an agreement with its main North American union and General Motors on transferring staff and departure terms, but has still to finalise agreements with GM itself and with the other unions.