Delphi Signs Sale Agreement for Wheel Bearings Business

Files Motion to Request Hearings with the Bankruptcy Court

January 17, 2008, TROY, MICH. -- Delphi Corporation (PINKSHEETS: DPHIQ), through its subsidiaries, has entered into an asset sale and purchase agreement with Resilience Capital Partners for the sale of its Wheel Bearings business, company officials announced today. Pursuant to the procedures outlined in the Bankruptcy Code, the company filed a motion with the U.S. Bankruptcy Court for the Southern District of New York to request a bidding procedures hearing on Jan. 25, 2008.

Following the completion of the bidding procedure process, a final sale hearing is anticipated to be set during the first quarter of 2008. The final sale of the Delphi Wheel Bearings business is subject to the approval of the U.S. Bankruptcy Court and other closing conditions.

As outlined in the court filing, the asset sale and purchase agreement between Delphi and Resilience Capital Partners includes:

* Purchase price of up to $44.2M (subject to certain price adjustments)
* Machinery and equipment
* Inventory
* Intellectual property
* Assignment and assumption of certain customer and supplier contracts
* Sandusky, OH Production and Engineering Facility
* Transition of salaried and hourly workforce

More information on this agreement and the court filing is available at www.delphidocket.com.

About Resilience Capital Partners

Resilience Capital Partners (www.resiliencecapital.com) is a private equity firm with offices in Cleveland, Ohio and Detroit, Michigan. Resilience is focused on investing in underperforming, corporate divestiture, and turnaround situations. Resilience's investment strategy is to acquire lower middle market companies that have solid fundamental business prospects, but have suffered from a cyclical industry downturn, are under-capitalized, or have less than adequate management resources. Resilience typically acquires companies with revenues of $25 million to $250 million. Since its inception in 2001, Resilience has acquired 15 companies with revenues in excess of $1 billion.

Source: Delphi

Bookmark/Search this post with:

 •    •    •    •    •    •    •    •    •    •