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Delphi sets bid procedures for $55.6 million catalyst business sale
By Caroline Salls
Pittsburgh, June 6 - Delphi Corp. requested court approval of the bid procedures for the proposed $55.6 million sale of its catalyst business, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Umicore is the stalking horse bidder.
According to the motion, the catalyst business employs about 745 people worldwide and produces catalysts at operating manufacturing facilities in Tulsa, Okla.; San Luis Potosi, Mexico; Florange, France; Port Elizabeth, South Africa; Clayton-Melbourne, Australia; and Shanghai, China.
Although the company believes the catalyst business's product line is fundamentally strong, Delphi said the business does not fit the product portfolio under its transformation plan.
Umicore will pay a $1 million deposit toward the purchase price, and other bids must include a deposit of 1.75% of the proposed purchase price.
At closing, $7 million of the purchase price will be placed into an escrow account to be held for 18 months in case of reductions to the initial purchase price and indemnity claims.
If Umicore is not the high bidder, Delphi will pay it a $2 million break-up fee and up to $1.75 million for expense reimbursement.
Bids are due July 24 and must be for more than the purchase price, plus the amount of the break-up fee and $1 million.
The auction will be held Aug. 1, and the sale hearing is scheduled for Aug. 16.
A hearing on approval of the bid procedures is scheduled for June 26.
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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