The company has extended its court appeal to break the lease at the U.S. Bankruptcy Court in Delaware until Feb. 25, said Kim Welch, VP of corporate communications for the automotive supplier. On Oct. 1, 2001, Federal-Mogul decided to separate its asbestos liabilities from its true operating potential by voluntarily filing for financial restructuring in Bankruptcy Court in the U.S. and Administration in the United Kingdom. "We're in negotiations with the landlords to break our leases in Southfield," Welch told GlobeSt.com. "We're confident we'll have a new lease soon."

The court hearing was scheduled to take place Jan. 29 until the extension was approved.

The company wants to sign a new 12-year lease at Travelers Tower, and place its name on the building, Welch said. The broker handling the potential transaction is CB Richard Ellis of Southfield.

However, the company is currently involved in two leases at its current 360,000-sf headquarters building, with Northwestern Associates and a Dana Corp. partnership. Welch would not reveal the time period for the existing leases. She said the reason for the move is also for space reasons. The 900 employees would only take up 270,000-sf at the Tower, along with 1,100 parking spaces, Welch said. "A lot of space at our current location is unusable," Welch said. "Our atrium is too big, for example. We only need between 250,000-sf to 270,000-sf, not as much as we have now."

The new lease would save the firm between $20 million to $25 million, Welch said. "We're very positive that this move will save this company a lot of money," Welch said.

If the company stayed at its headquarter building now, it could keep the facility after the lease. However, Welch said it's unlikely Federal-Mogul would want the building.