Appaloosa backs out of $2.55 billion Delphi deal

`` Appaloosa Management on Friday dealt a harsh blow to Delphi Corp.'s plans to emerge from bankruptcy when the hedge fund pulled out of its agreement to invest $2.55 billion in the auto-parts supplier. Appaloosa claims that Delphi violated several terms of the deal and said in a filing to the Securities and Exchange Commission that investors are entitled to a payment of $82.5 million by Monday relating to Delphi's move to give GM a bigger role in its exit plan.''