Delphi subsidiaries get approval of bid procedures for Saginaw plant asset sale

By Reshmi Basu

New York, Nov. 16 - Delphi Corp. obtained approval Friday of bid procedures for the sale of production inventory from its Saginaw, Mich., brake manufacturing plan from the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, TRW Automotive Holdings Corp. is the stalking horse bidder with a $26.4 million offer for the assets, plus inventory value.

Under the bidding procedures, if TRW is not the high bidder for the assets, the Delphi subsidiaries will pay it a $1.5 million breakup fee.

In addition, Delphi said TRW has agreed to pay $1.2 million for some Delphi Canada assets, subject to higher bids at auction.

Competing bids must include the amount of the Saginaw purchase price, the amount of the Canadian purchase price, the break-up fee and $500,000.

Subsequent bids must be made in increments of at least $250,000.

The deadline to submit bids is Nov. 27. If there are no qualified bidders, then a sale hearing will be held on Nov. 29. If there are alternative offers, an auction will be held on Dec. 6 and the sale hearing on Dec. 20.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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