Delphi Signs Asset Sale Agreement with TRW for Certain North American Brake Components Machining and Assembly Assets—Files Motion to Request Hearing with the Bankruptcy Court
TROY, Mich.—Delphi Corporation (PINKSHEETS: DPHIQ), through certain of its affiliates, has entered into an asset sale and purchase agreement with a subsidiary of TRW Automotive Holdings Corp. (NYSE: TRW) for the sale of a portion of its North American brake component machining and assembly assets, company officials announced today. As required under the Bankruptcy Code, Delphi filed a motion with the U.S. Bankruptcy Court for the Southern District of New York requesting a hearing on Sept. 27, 2007 to approve bidding procedures.
Following the completion of the bidding procedure process, including a potential competitive auction, a final sale hearing is anticipated to take place during the fourth quarter of 2007. The final sale of the assets is subject to the approval of the U.S. Bankruptcy Court, and must meet the satisfaction of specified closing conditions.
As outlined in the court filing, the proposed transaction between Delphi and TRW contemplates:
* The sale of various brake component machining and assembly equipment from operations in Saginaw, MI, Springhill, TN, and Oshawa, Canada.
* The sale of productive inventory.
* A five year lease (with an opportunity to extend) on a portion of Delphi’s brake manufacturing facility in Saginaw, MI.
To the extent set forth in the agreement, TRW will also commence employment of the active hourly employees at the lease site.
Delphi will carefully manage the sale of the assets in coordination with customers, employees, unions and other stakeholders.
More information on this agreement and the court filing is available at www.delphidocket.com.
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