SOURCE: Delphi Corporation

October 16, 2007 10:44 ET

Delphi Signs Master Sale Agreement for Interiors and Closures Business -- Files Motion to Request Hearing With the Bankruptcy Court

TROY, MI--(Marketwire - October 16, 2007) - Delphi Corporation (PINKSHEETS: DPHIQ) has entered into a master sale and purchase agreement with a wholly owned subsidiary of The Renco Group, Inc. for the sale of its global Interiors and Closures business, company officials announced today. The agreement has been approved by Delphi's Board of Directors.

Pursuant to the procedures outlined in the Bankruptcy Code, Delphi filed a motion with the U.S. Bankruptcy Court for the Southern District of New York to request a bidding procedures hearing on October 25, 2007.

Following the completion of the bidding procedure process, a final sale hearing is anticipated to be set for January 8, 2008. The final 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.

As outlined in the court filing, the master sale and purchase agreement involves the entire global Interiors and Closures business line, including: book of business, manufacturing operations, intellectual property, personnel, supplier contracts and share of joint ventures. Delphi's Interiors and Closures business operates manufacturing facilities in:

--  Gadsden, Alabama
--  Cottondale, Alabama
--  North Kansas City, Missouri
--  Orion, Michigan
--  Adrian, Michigan
--  Woerth, Germany
--  Matamoros, Mexico
--  SDADS Joint Venture (Shanghai, China)
--  KDS Joint Venture (Daegu, Korea)
--  Other contracted manufacturing locations
    

More information on this agreement and the court filing is available at www.delphidocket.com.

FORWARD-LOOKING STATEMENTS

This press release, as well as other statements made by Delphi, may contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the debtor-in-possession financing facility; the terms of any reorganization plan ultimately confirmed; the Company's ability to obtain Court approval with respect to motions in the chapter 11 cases prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; the Company's ability to satisfy the terms and conditions of the revised Equity Purchase and Commitment Agreement; risks associated with third parties seeking and obtaining Court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan (including the transformation plan described in Item 1. Business "Potential Divestitures, Consolidations and Wind-Downs" of the Annual Report on Form 10-K for the year ended December 31, 2006 filed with the SEC) and to do so in a timely manner; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees and the ability of the Company to attract and retain customers. Additional factors that could affect future results are identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2006, including the risk factors in Part I. Item 1A. Risk Factors, contained therein and the Company's quarterly periodic reports for the subsequent periods, including the risk factors in Part II. Item 1A. Risk Factors, contained therein, filed with the SEC. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various prepetition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy cases to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interest and cancellation of their interests. In addition, under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing, the Company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to prepetition liabilities.

Contact Information

  • CONTACT:
    Brad Jackson
    248.813.6873
    Email Contact

    Chris Deri
    The Renco Group, Inc.
    212-704-4520