Delphi gets court OK on bid procedures for $17 million sale of exhaust emissions business

By Rebecca Melvin

New York, Nov. 24 - Delphi Corp. obtained approval of the bid procedures for its proposed $17 million sale of its exhaust emissions business Monday by the U.S. Bankruptcy Court for the Southern District of New York.

Bienes Turgo SA de CV is the stalking horse bidder.

Competing bids are due by Dec. 8 and must be accompanied by a 10% deposit, with the auction to be held Dec. 11 and the sale hearing set for Dec. 17.

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.

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.

As previously reported, Bienes has made a $1.7 million deposit toward the purchase price. If Bienes isn't the high bidder, Delphi will pay a break-up fee of 3% of the proposed purchase price and reimburse up to $600,000 of its sale-related expenses.

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.

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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