Delphi Sells Unit for $106 Million

Delphi Corp. plans to sell the part of its business that makes automotive interiors and fasteners for $106 million to investment firm the Renco Group Inc. The two companies, which announced the proposed deal earlier this year, finalized the details Monday. But Renco's bid for Delphi's console and instrument panel business could be topped in an auction the Troy, MI-based supplier must hold in its bankruptcy reorganization.

From Detroit Free Press

Delphi Corp. plans to sell the part of its business that makes automotive interiors and fasteners for $106 million to investment firm the Renco Group Inc.

The two companies, which announced the proposed deal earlier this year, finalized the details Monday.

But Renco’s bid for Delphi’s console and instrument panel business could be topped in an auction the Troy, MI-based supplier must hold in its bankruptcy reorganization. Delphi, in court papers filed Monday, set a deadline of 11 am Nov. 26 to submit bids. If there are no higher bids, Delphi expects a hearing on the sale to be scheduled Jan. 8.

Delphi had said it plans to leave Chapter 11 protection by January next year. Until last month, Delphi had aimed to finish the process by the end of this year. But with the hearing on the fastener-business sale slated for early January, it would be unlikely that the company could emerge from Chapter 11 by the end of the year, said John Pottow, assistant professor specializing in bankruptcy law at the University of Michigan Law School.