Delphi $9.8 million brake hose business sale approved

By Caroline Salls

Pittsburgh, March 27 - Delphi Corp. obtained court approval of the $9.8 million sale of its brake hose business to Harco Manufacturing Group, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, the final sale of the brake hose business is subject to a waiver of any no-sale clause in any agreements between Delphi and the Steel Workers of America, Local 87L, AFL-CIO/CLC.

Under a manufacturing services agreement, Delphi said it will continue to produce brake hose products for a maximum of 12 months or earlier if the transition of the business line is completed.

Delphi said in the motion that although it believes the brake hose product line is fundamentally strong, the business does not fit within the company's anticipated product portfolio under its transformation plan.

In particular, Delphi said it lacks a global manufacturing presence in this particular product line to grow the business, as well as the fitting capacity and designs for brake hose assemblies in vehicles not manufactured by General Motors Corp.

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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