Bankrupt automotive component giant Delphi is taking court action against suppliers that allegedly threaten to halt deliveries until they are paid.

Four court orders have already been obtained against companies. They are required to explain before a bankruptcy judge their "extortive" behavior. Two of the companies are German.

Under US bankruptcy law, suppliers can not alter contracts to take advantage of the bankrupt company's distressed financial state. Delphi has however will be able to make payments of $90m following court approval.

The Delphi legal team hasten to say that less than 1% of suppliers are making the alleged threats.

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