Delphi Receives Bankruptcy Court Approval to Sell Catalyst Business to Umicore
TROY, Mich. - Delphi Corporation (PINKSHEETS: DPHIQ) and certain of its affiliates (collectively, “Delphi”) received approval from the U.S. Bankruptcy Court for the Southern District of New York for the sale of assets related to the company’s global original equipment and aftermarket catalyst business to Umicore for $75 million (subject to adjustments), Delphi officials announced today.
“Delphi continues to make significant progress with its transformation plan. This sale is consistent with our ongoing effort to refine our product portfolio to feature the core technologies for which we have competitive and technological advantages,” said John Sheehan, Delphi’s chief restructuring officer. “This transaction is another step toward our emergence.”
The court also approved Catalytic Solutions Inc. (“CSI”) as the alternate bidder, and authorized Delphi to consummate the sale with CSI in the event the transaction between Delphi and Umicore does not close.
As previously announced, Delphi selected Umicore as the lead bidder and received court approval to proceed with the sale process for the catalyst business. In accordance with bidding procedures approved by the bankruptcy court, Delphi conducted an auction to allow other qualified buyers to bid on the assets related to the catalyst business. At the conclusion of the auction, Delphi selected Umicore as the successful bidder.
Delphi will carefully manage the transition of the business, and the sale will be completed in coordination with Delphi’s customers, employees, unions and other stakeholders. The transaction, which is subject to certain closing conditions, including completion of consultation procedures with certain unions and works councils, and completion of the closing documents, is expected to close before year-end 2007.
Although the company is selling its catalyst business, it will continue to provide full engine management systems (EMS), including air and fuel management, combustion and valvetrain technology, and exhaust systems technology through its gas EMS product business unit.
More information about the sale is available at www.delphidocket.com.
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