| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Delphi Corp. > News item |
Delphi subsidiaries set bid procedures for Saginaw plant asset sale
By Caroline Salls
Pittsburgh, Sept. 18 - Delphi Corp. has agreed to sell a portion of its North American brake component machining and module assembly assets as well as some of Delphi's production inventory from its Saginaw, Mich., brake manufacturing plant to TRW Automotive Holdings Corp., according to a TRW news release.
TRW also has agreed to lease a portion of Delphi's Saginaw plant and to hire the active hourly employees at the leased site.
According to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York, TRW has agreed to pay $26.4 million for the assets, plus inventory value.
The assets to be sold are owned by Delphi subsidiaries Delphi Automotive Systems LLC and Delphi Technologies, Inc.
TRW has paid a $2 million deposit.
If TRW is not the high bidder for the assets, the Delphi subsidiaries will pay it a $1.5 million break-up fee.
In addition, Delphi said TRW has agreed to pay $1.2 million for some Delphi Canada assets, subject to higher bids at auction.
Competing bids must include the amount of the Saginaw purchase price, the amount of the Canadian purchase price, the break-up fee and $500,000.
Subsequent bids must be made in increments of at least $250,000.
The transactions are expected to be completed by the end of the fourth quarter, the release said.
A hearing on approval of the bid procedures is scheduled for Sept. 27.
The auction will be held on Oct. 23 and the sale hearing is set for Oct. 25.
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.