UPDATE 2-Judge blocks Platinum expense payout in Delphi deal

* Judge blocks payment of $30 mln in expenses to Platinum

* Delphi DIP lenders opposed potential payout

* Platinum could still seek some expense repayment later (Updates with Platinum statement, background details)

By Emily Chasan

NEW YORK, July 1 (Reuters) - A U.S. bankruptcy judge on Wednesday denied a request from auto supplier Delphi Corp (DPHIQ.PK) to pay private equity firm Platinum Equity up to $30 million in expense reimbursements if its bid for the company is topped.

At a U.S. Bankruptcy Court hearing in Manhattan, Judge Robert Drain said $30 million was "not reasonable or appropriate," but that his ruling would not preclude Platinum from seeking another kind of expense reimbursement later.

Delphi, which was spun off from General Motors Corp GMGMQ.PK in 1999 and filed for bankruptcy in 2005, said last month that it had reached a deal to sell most of its global operations to private equity firm Platinum Equity, in a plan that with the participation of GM would allow Delphi emerge from Chapter 11 bankruptcy protection.

But in early June Judge Drain ordered Delphi to allow other bidders to compete with Platinum's offer at an auction to be held in late July. That offer included a $3.6 billion financing package for Delphi that would come from various sources including GM and Platinum, people familiar with the matter have told Reuters.

Delphi argued in court that because of the new auction process it needed to offer the expense reimbursement to compensate Platinum for its efforts if Platinum does not make the winning bid.