Delphi Corp. said Monday it plans to sell its brake-hose business to privately held Harco Manufacturing Group.
Delphi, currently operating under bankruptcy protection, said it filed a motion with the U.S. Bankruptcy Court for the Southern District of New York to request a bidding procedures hearing on Feb. 15, 2007. A final sale hearing is anticipated to be set for March 22, 2007.
The final sale is subject to the approval of the U.S. Bankruptcy Court, and waiver of any "no sale" clause in any agreements between Delphi and the Steel Workers of America.The sale includes machinery and equipment, intellectual property, and assignment and assumption of certain customer contracts, but does not include any real estate/production facility or the transfer of the Delphi workforce to Harco.
Under a manufacturing services agreement, Delphi would continue to produce brake-hose products for a maximum of 12 months or until the transition of the business line is completed.
