By THOMAS HARTLEY
Business First

A group of Delphi Corp. salaried retirees has filed suit, seeking an independent administrator to help stop the bankrupt auto supplier from terminating the white-collar retirees' pension plan.

Delphi has said that it was seeking to have the plan transferred to the U.S. Pension Benefit Guaranty Corp.

On Thursday, the Delphi Salaried Retiree Association filed a federal lawsuit in U.S. District Court in Michigan, asking the court to replace the plan's current trustees, who are Delphi executives, and appoint a new administrator "loyal only to us."

The present situation is a "clear conflict of interest," the group charged in a statement, which also said, "We have not been kept advised by our plan administrator of any negotiations over the threatened termination of our retirement plan. We want our pension rights protected to the fullest extent of the law."

The parts-maker is the parent of Western New York's largest manufacturer, Delphi Thermal Systems in Lockport, which has 2,100 employees locally.

Den Black, a former chief engineer at Lockport, is interim chair of the retiree group. Former Lockport site manager James Frost of Clarence is another of its leaders.

The group also has filed an objection in Bankruptcy Court to the pension plan being transferred to the federal agency.

Meanwhile, it has been reported that lenders to Delphi, which has been operating under Chapter 11 bankruptcy protection since October 2005, plan to bid for the company's assets using loan collateral.

If the offer fails, a Thursday court filing said, the lenders have threatened a liquidation of the company.

"Lenders have assembled a management team to operate the debtors' businesses, conducted negotiations with GM and lined up financing," the group, which is led by hedge fund Elliott Management Corp., said in the filing.

The bid would compete with private-equity firm Platinum Equity LLC's effort to buy the assets for $3.6 billion, which would include $2 billion in financing from GM.

Under the Platinum offer, the automaker would take control of Delphi's global steering business and four U.S. plants, including facilities in Lockport and Rochester.