diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java b/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
index 5ca5944e572..61b4a6aeb49 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
@@ -288,7 +288,7 @@ public class JetPsiUtil {
     public static void deleteClass(@NotNull JetClassOrObject clazz) {
         CheckUtil.checkWritable(clazz);
         JetFile file = clazz.getContainingJetFile();
-        if (clazz.isLocal() || file.getDeclarations().size() > 1) {
+        if (!clazz.isTopLevel() || file.getDeclarations().size() > 1) {
             PsiElement parent = clazz.getParent();
             CodeEditUtil.removeChild(parent.getNode(), clazz.getNode());
         }
diff --git a/idea/testData/safeDelete/deleteObject/kotlinObject/companionObject.kt b/idea/testData/safeDelete/deleteObject/kotlinObject/companionObject.kt
new file mode 100644
index 00000000000..d9c7e92890a
--- /dev/null
+++ b/idea/testData/safeDelete/deleteObject/kotlinObject/companionObject.kt
@@ -0,0 +1,6 @@
+
+class A {
+    fun foo(): Int = 0
+
+    companion ob<caret>ject {}
+}
\ No newline at end of file
diff --git a/idea/testData/safeDelete/deleteObject/kotlinObject/companionObject.kt.after b/idea/testData/safeDelete/deleteObject/kotlinObject/companionObject.kt.after
new file mode 100644
index 00000000000..c3fe09baa89
--- /dev/null
+++ b/idea/testData/safeDelete/deleteObject/kotlinObject/companionObject.kt.after
@@ -0,0 +1,4 @@
+class A {
+    fun foo(): Int = 0
+
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/safeDelete/JetSafeDeleteTestGenerated.java b/idea/tests/org/jetbrains/kotlin/safeDelete/JetSafeDeleteTestGenerated.java
index c0b6aeab754..62d84c73bb4 100644
--- a/idea/tests/org/jetbrains/kotlin/safeDelete/JetSafeDeleteTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/safeDelete/JetSafeDeleteTestGenerated.java
@@ -133,6 +133,12 @@ public class JetSafeDeleteTestGenerated extends AbstractJetSafeDeleteTest {
             doObjectTest(fileName);
         }
 
+        @TestMetadata("companionObject.kt")
+        public void testCompanionObject() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/safeDelete/deleteObject/kotlinObject/companionObject.kt");
+            doObjectTest(fileName);
+        }
+
         @TestMetadata("localObject1.kt")
         public void testLocalObject1() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/safeDelete/deleteObject/kotlinObject/localObject1.kt");