Delphi asks court to approve $44 million purchase agreement with GM

By Jennifer Lanning Drey

Portland, Ore., June 7 - Delphi Corp. requested court approval of an agreement with General Motors Corp. under which Delphi would purchase new tooling and equipment for about $44 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The equipment would be used at Delphi's Sandusky, Ohio, facility, which manufactures automotive bearings for GM.

According to the motion, Delphi needs the new equipment in order to produce the bearings in compliance with GM's new automotive bearing production program.

Under the agreement, Delphi would purchase the new tooling and equipment and GM would in turn purchase the equipment from Delphi.

If Delphi sells the Sandusky facility, it would purchase the equipment back from GM and include the assets in the sale, according to the motion.

A hearing has been 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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