Judge extends time for Visteon to gain support for reorganization plan
By Randall Chase, APWednesday, May 12, 2010
Judge gives Visteon reorganization plan more time
WILMINGTON, Del. — A bankruptcy judge in Delaware has granted auto parts supplier Visteon more time to win support for its reorganization plan.
The judge granted Visteon’s request Wednesday over objections from shareholders who want to submit an alternative plan.
The judge plans to hear arguments on shareholder motions to appoint an official equity committee, and an examiner to review Visteon’s valuation and the actions of its management.
Visteon’s latest revised plan would give senior noteholders control if they can raise $1.25 billion to pay off secured lenders. If the bondholders can’t raise the money, Visteon would revert to plan giving term lenders control by converting $1.6 billion in secured claims to 85 percent of the equity in the reorganized company.
