Delphi on Tuesday said it had signed an asset sale and purchase agreement with BeijingWest Industries for the sale of its remaining global suspension and brakes business.
The bankrupt supplier three years ago decided the brakes and suspension business was a non-core product lines that no longer fit into the company’s future plans and could become more profitable and competitive as stand-alone businesses or as part of another organisation with the working capital to invest.
Delphi has already concluded similar deals with Bosch, Tenneco and TRW in North America, as well as asset sales and business transfers with SEVA in South America, and said this latest proposed sale “represents further substantial progress towards the completion of Delphi’s transformation plan announced three years ago”.
Delphi will file a motion with the US Bankruptcy Court for the Southern District of New York requesting a hearing on 23 April to approve bidding procedures, and a hearing on 21 May authorising and approving the sale of assets.
The final sale is subject to court approval and other closing conditions but Delphi anticipates closing during the fourth quarter of 2009.
The bankruptcy Court last week adjourned until 2 April approval hearings on Delphi’s proposed sale of its global steering business to General Motors to give the US treasury more time to evaluate the agreements.
The treasury had deemed the agreements “material transactions” under its 31 December 2008 loan agreement with GM and the postponement was also to give Delphi time to deal with other objectors.
Under the brakes and suspension sale and purchase agreement, BeijingWest Industries will acquire machinery and equipment, intellectual property and some real estate while some customer and supplier contracts will also be transferred.
The business has around 3,000 employees, primarily in Poland, China, Mexico, France and the United States.