Delphi gets court okay on bidding procedures for $15 million sale of Mexican brake plant sale

By Reshmi Basu

New York, June 26 - Delphi Corp. obtained court approval on the bidding procedures for the proposed $15 million sale of its brake plant in Saltillo, Mexico from the U.S. Bankruptcy Court for the Southern District of New York.

German auto parts maker Robert Bosch LLC is the stalking horse bidder.

If Delphi receives bids higher than Bosch's $15 million 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.

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.

The competitive auction will be held on July 17 and 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.