UPDATE 1-Delphi can proceed with Appaloosa suit-judge


(Adds detail on ruling, background) NEW YORK, July 28 (Reuters) - Delphi Corp. can proceed with a suit against hedge fund Appaloosa Management LP for withdrawing from a plan to invest in the auto parts maker, a U.S. bankruptcy court judge ruled on Monday. Judge Robert Drain in New York denied motions by Appaloosa and other investors to dismiss Delphi's suit in full, though Drain ruled that other investors, including Pardus Capital and Harbinger Capital, would not be compelled to complete ...

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