Feb 26 2007
Delphi Corporation announced today that it has signed a non-binding term sheet with The Renco Group, Inc. for the sale of its Interiors and Closures business. This non-binding term sheet signals the initiation of a comprehensive due diligence period, including consultations with customers and unions, aimed at the development and execution of a master sale and purchase agreement. The sale of Delphi's Interiors and Closures business is subject to the approval of the U.S. Bankruptcy Court and other constituencies in the U.S. and abroad, and waiver of any "no sale" clause in any union collective bargaining agreements.
Delphi's Interior and Closures business includes products such as instrument panels, consoles, cockpits, door modules and latch systems. The business serves a number of Original Equipment Manufacturers through a global footprint that includes manufacturing operations in the United States, Mexico, Austria, Germany, China and Korea and generates annual revenue of approximately $1.3 Billion.
Details of the negotiations between Delphi and The Renco Group will remain confidential until a master sale and purchase agreement has been negotiated, signed and filed with the U.S. Bankruptcy Court.
Any sale of the Interior and Closures business would be done in coordination with Delphi's customers, unions and other stakeholders to carefully manage the transition of the business and would be subject to the completion of the consultation process with the relevant works councils in Europe. Also, the disposition of any U.S. operations would be accomplished in accordance with the requirements of the U.S. Bankruptcy Court.