SOURCE: Delphi Corporation

February 20, 2007 16:00 ET

Delphi Signs Non-Binding Term Sheet With the Renco Group for Sale of Interiors and Closures Business

TROY, MI -- (MARKET WIRE) -- February 20, 2007 -- Delphi Corporation (PINKSHEETS: DPHIQ) 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.


Delphi is a leading global supplier of mobile electronics and transportation systems, including powertrain, safety, steering, thermal, and controls & security systems, electrical/electronic architecture, and in-car entertainment technologies. Engineered to meet and exceed the rigorous standards of the automotive industry, Delphi technology is also found in computing, communications, consumer electronics, energy and medical applications. Headquartered in Troy, Mich., Delphi has approximately 171,000 employees and operates 159 wholly owned manufacturing sites in 36 countries with sales of $26.9 billion in 2005. Delphi can be found on the Internet at


The Renco Group, Inc. is a private diversified investment holdings company with a broad portfolio of operating companies and financial investments. Renco holds interests in number of companies in the mining, automotive, magnesium, steel, metals fabrication and material handling industries. Operating companies in which Renco holds an interest include AM General, US Magnesium, Doe Run Resources, Unarco Material Handling and Baron Drawn Steel. Renco generates in excess of $3.5 billion in revenue while employing over 12,000 people worldwide.


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. 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 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 Equity Purchase and Commitment Agreement; the Company's ability to satisfy the terms and conditions of the Plan Framework Support Agreement (including the Company's ability to achieve consensual agreements with GM and its U.S. labor unions on a timely basis that are acceptable to the Plan Investors in their sole discretion); 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, 2005 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 Annual Report on Form 10-K for the year ended December 31, 2005 filed with the SEC including the risk factors in Part I. Item 1A. Risk Factors, contained therein. 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 pre-petition 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 pre-petition liabilities.

Contact Information

  • Media Contacts:
    Brad Jackson
    Delphi Corporation
    Email Contact

    Chris Deri
    The Renco Group, Inc.