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The consortium of investors that was seeking to take control of the troubled Delphi components group has walked away from the deal, leaving Delphi with a $2.5 billion hole in its finances.

The move by the investor group, led by Appaloosa Management, means that Delphi will remain in Chapter 11 court protection from bankruptcy until new sources of money can be found.

In a letter stating its intention to withdraw from the financing scheme, the group said Delphi had entered into agreements with its former parent General Motors that were unreasonable and would leave the restructured Delphi with too much debt.

Delphi president and chief restructuring officer John Sheehan said: “We are extremely disappointed that our investors have taken the position that they are not obligated to fund their plan and instead have chosen to walk away from the company.”

Delphi had hoped to emerge from Chapter 11 court protection in the next few days. The private finance group said that it still could be involved "in a capacity different than currently envisioned".