Resilience Capital Partners is back on top again.
On Monday, an investment group represented by Baytree Investors Inc. bid $75 million to buy the Delphi plant on Perkins Avenue. The group outbid Cleveland-based Resilience Capital Partners, who entered into a $44.2 million purchase agreement last month with Delphi Corp.
The newest, higher bid was withdrawn Wednesday.
"The sellers advised us that they would be retaining the accounts receivable and the accounts payable of the business at the closing date. We wanted, as one of the conditions of our offer, to include the accounts receivable, thus it created less value to us as the buyer," wrote Chris Jansen, president of Baytree Investors, in an e-mail Wednesday.
The investment group included Joseph B. Anderson Jr. and Mark Davison, former General Motors auto industry veterans and leaders of TAG Holdings -- the Troy, Mich., parent corporation for a diverse collection of manufacturing and service-based enterprises.
The bid was submitted before the Monday deadline of a bid hearing, which allowed other businesses interested in acquiring the plant a chance to outbid Resilience.
The new bid proposed keeping the plant's nearly 1,000 employees, who would receive 20 percent ownership in the business. Hourly workers would also have been represented on the new company's board of directors.
"I support anyone who wants to buy it and keep it going," said Mark Litten, executive director of the Erie County Economic Development Corp. "It would be nice if there were all kinds of potential acquirers, but you only need one."
The purchase agreement between Delphi and Resilience includes machinery and equipment, intellectual property, the assignment and assumption of certain customer and supplier contracts, the local facility and the transition of both salaried and hourly workers.
Steve Rosen, the managing partner for Resilience, has said he believes the local plant is viable.
Resilience was founded in 2001. It has an investment philosophy focused on turning around lower- to middle-market businesses that don't perform as well as they could.
In 2005, Delphi Corp. filed for Chapter 11 bankruptcy. In September, several companies submitted bids to the U.S. Bankruptcy Court to buy the local wheel bearings plant. The proceedings are taking place in the U.S. Bankruptcy Court.