TROY, Mich. (Feb. 1) — Delphi Corp. has entered into an asset sale and purchase agreement to sell its brake hose business to Harco Manufacturing Group L.L.C. for $9.8 million plus other considerations.
The deal between Delphi and Harco includes machinery and equipment; intellectual property; and assignment and assumption of certain customer contracts. It doesn't include any real estate or production facilities, or the transfer of the Delphi work force to Harco.
Delphi would continue to make brake hose products for up to 12 months under a manufacturing services agreement.
Delphi filed a motion with U.S. Bankruptcy Court to request a bidding procedures hearing on Feb. 15. A final sale hearing would be anticipated for March 22, the company said, following completion of the bidding procedure process.
The final sale is subject to approval of the U.S. Bankruptcy Court and the waiver of any "no sale" clause in any agreements between Delphi and the United Steelworkers Local 87 at Delphi's Dayton, Ohio plant.