DPHIQ (.089) Delphi to Sell Global Exhaust Business
Friday, June 27 2008 9:00 AM, EST
Market Wire "US Press Releases "
AUBURN HILLS, MI -- (MARKET WIRE) -- 06/27/08 -- Delphi Corporation (PINKSHEETS: DPHIQ) today announced that it is seeking buyers for its global exhaust business as part of the company's transformation plan.
The business to be sold relates to the design and manufacture of the exhaust system front exhaust module ("hot end") including catalytic converters and exhaust manifolds. The business serves more than 10 major customers and includes sites in Blonie, Poland ; Clayton, Australia ; Gurgaon, India ; and Port Elizabeth, South Africa ; as well as joint venture interests in Shanghai, China ; and Monterrey, Mexico ; and technical centers in Auburn Hills and Flint, Michigan ; and Bascharage, Luxembourg .
Although Delphi intends to divest its exhaust business, the company intends to continue to provide full engine management systems, including air and fuel management, and combustion and valve-train technology.
Additionally, Delphi's non-equity based alliance with Belgium -based Bosal Group to offer complete exhaust systems will be terminated by mutual agreement. The alliance was announced in the spring of 2005. Delphi and Bosal together provided customized exhaust systems for automotive and commercial vehicle manufacturers worldwide to meet stringent exhaust emissions standards and reduce engine noise.
Pending Court approval, Delphi will retain Lincoln International , a leading global mid-market investment bank, to explore sale opportunities. Parties interested in Delphi's exhaust business should contact Robert Satow at (+1) 212.277.8102 or rsatow@lincolninternational.com.
For more information about Delphi, visit www.delphi.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 and its advance agreement with GM, to obtain an extension of term or other amendments as necessary to maintain access to such facility and advance agreement; 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 consummate its amended plan of reorganization which was confirmed by the Court on January 25, 2008 or any other subsequently confirmed plan of reorganization; 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 "Plan of Reorganization and Transformation Plan" of the Annual Report on Form 10-K for the year ended December 31, 2007 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 or those of its principal customers 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, 2007 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 prepetition liabilities, common stock and/or other equity securities.
CONTACT:
John Wray
+1 248.732.0614
Email Contact
