Delphi sets bid procedures for $17 million exhaust emissions business sale

By Caroline Salls

Pittsburgh, Nov. 14 - Delphi Corp. requested court approval of the bid procedures for the proposed $17 million sale of its exhaust emissions business, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Delphi's global exhaust emissions business produces catalytic converters and related assemblies that are sold globally and used in a variety of gas and diesel emissions control applications, the motion said.

Bienes Turgo SA de CV is the stalking horse bidder.

In addition to the exhaust business, the sale also includes a 40% interest in the Katcon joint venture and a 100% interest in Delphi South Africa (Proprietary) Ltd.

Bienes has made a $1.7 million deposit toward the purchase price.

If Bienes is not the high bidder, Delphi will pay it a break-up fee of 3% of its proposed purchase price and reimburse up to $600,000 of its sale-related expenses.

Competing bids are due by 11 a.m. ET on Dec. 8, and all bids must include a 10% deposit.

Initial overbids must be for at least $650,000 more than the stalking horse bid, plus the amount of the break-up fee.

Subsequent bids at auction must be for at least $250,000 more than the previous bid.

The auction will be held Dec. 11, and the sale hearing is scheduled for Dec. 17.

The bid procedures approval hearing is scheduled for Nov. 24.

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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