Delphi sets bid procedures for $90 million brake and ride dynamics business sale

By Caroline Salls

Pittsburgh, April 1 - Delphi Corp. requested court approval of the bid procedures for the proposed sale of its brakes and ride dynamics business, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

BeijingWest Industries Co. Ltd. is the stalking horse bidder with a $90 million offer. BeijingWest has agreed to make a $20 million deposit by April 9.

If BeijingWest is not the high bidder, Delphi will pay it a $2.94 million break-up fee.

Competing bids are due by 11 a.m. ET on May 11, and initial overbids must exceed the purchase price by at least $1 million, plus the break-up fee amount, plus the amount of specified advances.

Subsequent bids at auction must be for at least $500,000 more than the previous bid.

The auction will be held May 15, and the sale hearing is scheduled for May 21.

A hearing on approval of the bid procedures is scheduled for April 23.

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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