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Tier One moves continue apace

Although the decision isn’t final, Cerberus Capital Management LP, which along with four other investors had planned on buying a stake in the reorganized Tier One supplier Delphi Corp. (Troy, MI), may participate in the company’s exit financing, but not as a plan investor. Cerberus, along with Appaloosa Management LP, Harbinger Capital Partners Master Fund I Ltd., Merrill Lynch & Co., and UBS Securities, had signed on to invest $3.4 billion for a majority stake in Delphi, according to The Detroit Free Press.
In a press release, Delphi said the Cerberus move would not preclude the company from filing its bankruptcy reorganization plan prior to the expiration of its exclusivity period, which ends July 31, 2007. Delphi anticipated that the other four investors would stay on, and it added that no involved party had given a notice that it would terminate the framework agreement.
Collins & Aikman (C&A; Southfield, MI), also in the midst of Chapter 11 reorganization, announced that it had signed an asset purchase agreement with Cadence Innovation LLC to sell its North American plastics business, which includes nine plants in the U.S., Canada, and Mexico, and employs 3500. Purchased in auction, the sale will be finalized in a May 2007 hearing.
In addition, automotive financier Wilbur Ross’s International Automotive Components (IAC) Group LLC announced a definitive agreement to acquire C&A’s carpet and acoustics, or soft trim business, which has 16 plants in the U.S., Canada, and Mexico and generates annual sales of $615 million. At the start of April, IAC closed on the purchase of Lear’s North American interior trim division. Over the last year-and-a-half, IAC has acquired the European and South American operations of C&A, Japan’s Mitsuboshi Belting Kaseihin, and the European interior systems division of Lear.
In a press release, Ross said the combination of C&A’s soft trim with the previously acquired IAC business, would create a North American operation with 42 facilities, more than 15,000 employees, and annual worldwide sales approaching $5 billion.—[email protected]
TAGS: Business
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