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Delphi to seek approval to sell global bearings, steering divisions Feb. 21
By Rebecca Melvin
New York, Jan. 25 - Delphi Corp. received approval of the proposed bidding procedures for the sale of its global wheel bearings business to stalking horse bidder Resilience Capital Partners, a subsidiary of ND Acquisitions Corp., for $44.2 million, according to a Friday filing of the U.S. Bankruptcy Court for the Southern District of New York.
Also Friday, Delphi said it plans to seek court approval of the sale of its global steering and half-shaft division to sole bidder Platinum Equity LLC for $447 million. Competing bids were due on Jan. 18.
A hearing for approval of both sales has been scheduled Feb. 21.
The bearing business assets include Delphi's Sandusky, Ohio, production and engineering facility, machinery and equipment, inventory, intellectual property and the assignment and assumption of customer and supplier contracts, as well as the transition of salaried and hourly workers.
If ND Acquisitions is not the high bidder, Delphi will pay it a $1.5 million break-up fee and pay its out-of-pocket expenses related to the sale. Delphi Automotive Systems LLC and Delphi Technologies Inc. are the selling subsidiaries.
Meanwhile, Steering Solutions Corp., an entity of private equity firm Platinum Equity, was the stalking horse bidder of the steering and half-shalf division. The proposed $447 million sale price will include $190 million in assumed liabilities and estimated restructuring costs, as well as $257 million to be provided by General Motors Corp. as part of the sale.
Delphi is a Troy, Mich., based automotive electronics manufacturer that filed for bankruptcy protection on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.
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