Appaloosa Management LP says it is entitled to $82.5 million from Delphi Corp. because the bankrupt supplier breached their investment agreement.

Appaloosa terminated an agreement with Delphi today that would have provided the supplier with $2.55 billion to help it exit Chapter 11 protection. The hedge fund says it killed the deal because Delphi sought additional backing from former parent and top customer General Motors Corp.

The termination puts at risk Delphi’s reorganization plan, which needs $6.1 billion in loans from investors.

“We are extremely disappointed that our Plan Investors have taken the position that they are not obligated to fund their plan investment commitments to Delphi and instead have chosen to walk away from the company and its stakeholders,” says John Sheehan, Delphi vice president and chief restructuring officer, in a statement. “We are prepared to pursue actions that are in the best interests of Delphi and its stakeholders.”

Appaloosa says in a regulatory filing for the termination that under terms of the agreement it is entitled to an “alternate transaction fee” of $82.5 million and other transaction expenses that have not been paid.

Calls to Appaloosa’s offices in Chatham, NJ, were not immediately returned. Lindsey Williams, a spokesman for Troy, MI-based Delphi, said the supplier would not comment on Appaloosa’s claim.

Appaloosa’s decision to exit Delphi’s financing plan is not entirely surprising, as the firm previously had expressed dissatisfaction with GM expanding its influence over Delphi. April 4 was the first day Appaloosa was eligible to terminate the investment.