TROY, MI -- Delphi has entered into an asset sale and purchase agreement with a subsidiary of TRW Automotive Holdings Corp. for the sale of a portion of its North American brake component machining and assembly assets.

Delphi filed a motion with the U.S. Bankruptcy Court for the Southern District of New York requesting a hearing on Sept. 27 to approve bidding procedures. Following the completion of that process, which includes a potential competitive auction, a final sale hearing is expected to take place by the end 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 includes the sale of various brake component machining and assembly equipment from operations in Saginaw, MI; Springhill, TN; and Oshawa, Canada, as well as the sale of productive inventory. The deal would also include a five year lease (with an opportunity to extend) on a portion of Delphi's brake manufacturing facility in Saginaw.

According to the court filing, TRW would also begin hiring active hourly employees at the lease site.