Delphi obtains court approval on bidding procedures for $55.6 million catalyst business sale

By Reshmi Basu

New York, June 26 - Delphi Corp. received approval on the bidding procedures for the proposed $55.6 million sale of its catalyst business from the U.S. Bankruptcy Court for the Southern District of New York.

Belgian metals firm Umicore SA is the stalking horse bidder.

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.

As previously reported, 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.

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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