Ok, there appears to be more confusion on the definition of what exactly Chapter 11 Bankruptcy is, so here what is it is:
Chapter 11 is a state that is declared by corporations to protect them from creditors, what it says is that they spent more money then they actually have, and the company has the intent to stay in business and not liquidate all of it's assets and go out of business (Liquidation is Chapter 7 bankruptcy). What happens now is there is a reorganization of how the company intends to payoff its contracts and other debts. After this case is pleaded to the court they supervise they meet the needs and then potentially can relieve the creditors some or even all, so the company has time to get back on it's feet and doesn't start an uphill battle.
The Chapter 11 Bankruptcy code is being changed on October 17th, to become more creditor friendly, right now its easier on the corporations. Thats partially why Delphi declared it now rather than later.
Sooo....in the famous words of Douglas Adams, Don't Panic. My dad said (this is coming from an Financial Advisor) that a company with the product reputation of Delphi surely will be able to make its way back.
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Interesting Fact: Between Aug. 31 and Saturday, Delphi dropped 1.27 Billion Dollars off of its Debt (and 0.6 Billion of its Assets) thats pretty good for 6 weeks.
Interesting Fact 2: Worldcom had the worlds largest Chapter 11 Filing, listing 103 Billion in Debt
Interesting Fact 3 (theres a lot): Delphi has the largest amount of assets ever declared by a company with a Chapter 11 Filing