1st
April 2009 - Delphi Signs
Agreement to Sell Global Suspension and Brakes Business
Company To File Motion Requesting Court
Hearings To Approve Bidding Procedures and Authorize Sale of Assets
Delphi has announced that it has made
further progress with its portfolio transformation and has entered into
an asset sale and purchase agreement with BeijingWest Industries Co.,
Ltd. for the sale of Delphi's remaining global suspension and brakes
business. As part of the company's transformation plan announced on
March 31, 2006, Delphi identified its brakes and suspension business as
non-core product lines that no longer fit into the Company's future
strategic framework and could become more profitable and competitive as
stand-alone businesses or as part of another organization with the
working capital to invest in and support these businesses. Having
previously concluded asset sales and business transfers with Bosch,
Tenneco and TRW in North America, as well as asset sales and business
transfers with SEVA in South America, this proposed sale represents
further substantial progress towards the completion of Delphi's
transformation plan announced three years ago.
As required under the U.S. Bankruptcy Code,
Delphi expects to file a motion later today with the U.S. Bankruptcy
Court for the Southern District of New York requesting a hearing on
April 23, 2009, to approve bidding procedures, and a hearing on May 21,
2009, authorizing and approving the sale of assets.
The final sale of the business is subject to
court approval and other closing conditions. Delphi anticipates the sale
closing during the fourth quarter of 2009.
Under the sale and purchase agreement,
BeijingWest Industries Co., Ltd. will acquire machinery and equipment,
intellectual property and certain real property. Assignment and
assumption of certain customer and supplier contracts will also transfer
to BeijingWest Industries Co., Ltd. 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 business today is comprised of approximately 3,000
employees, primarily located in Poland, China, Mexico, France and the
United States.
Source: Delphi Press Release