Cerberus may be close to buying auto-parts maker

Cerberus Capital Management, a private-equity firm that has been buying automotive assets, is close to purchasing a division of parts-maker Collins & Aikman Corp., a creditor for the supplier said.

Cerberus has an agreement in principle to buy Collins’ automotive flooring and acoustic business, said David Barse, a former chairman of the unsecured creditors’ committee. The Southfield, Mich.-based manufacturer filed for Chapter 11 bankruptcy protection in May 2005. Its assets are being liquidated.

The sale would give New York-based Cerberus control of another automotive business. In November, Cerberus led the purchase of 51% of General Motor Corp.’s finance arm.

Cerberus is also the lead investor in a $3.4-billion proposal to acquire a majority of Delphi Corp., another auto-parts maker under bankruptcy protection.