Judge in Visteon bankruptcy asked to approve documents describing proposed reorganization plan

Judge weighs Visteon bankruptcy deal

WILMINGTON, Del. — The judge in auto parts supplier Visteon’s bankruptcy is being asked to approve documents supporting its proposed reorganization plan.

Visteon filed a new plan just before Monday’s hearing that tries to satisfy shareholders by offering them about 2 percent of the stock in the reorganized company.

But Visteon’s secured lenders and some shareholders are challenging more than $100 million in fees Visteon might have to pay under a $1.25 billion financing arrangement with a group of bond holders.

The bondholders would take roughly a 95 percent stake in Visteon if they can raise more than $900 million to pay the secured lenders. If not, Van Buren Township, Mich.’s Visteon would give the secured lenders an 85 percent equity stake in the new company.