Delphi asks for approval of Mexican brake plant sale to German buyer

By Reshmi Basu

New York, June 15 - Delphi Corp. asked for approval for the $15 million sale of its brake plant in Saltillo, Mexico to German auto parts maker Robert Bosch LLC, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, the debtor requested a June 26 hearing to approve bidding procedures.

Under the proposal, if Delphi receives bids higher than Bosch's offer, there will be a break-up fee of $450,000, which amounts to 3% of the purchase price. In addition, the debtor is also requesting an expense reimbursement of $200,000 for Bosch.

The company will then conduct a competitive auction on July 17 for the plant,

Robert Bosch and its affiliate Frenados Mexicanos entered into a purchase agreement to buy the land, machinery and equipment. Under the agreement, Delphi's facility lease and certain contracts will also be transferred to Bosch.

A final sale hearing is scheduled for July 19.

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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