Delphi sets bid procedures for sale of brakes and ride dynamics unit

By Rebecca Melvin

New York, April 23 - Delphi Corp. was granted approval of the bid procedures and a $2.94 million breakup fee for the proposed sale of its brakes and ride dynamics business by the U.S. Bankruptcy Court for the Southern District of New York on Thursday.

BeijingWest Industries Co. Ltd. is the stalking horse bidder with a $90 million offer.

Both businesses have operations in the United States and overseas, with the majority of employees for both divisions residing overseas.

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.

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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