Attorneys challenge bankruptcy judge order allowing Visteon to terminate retiree benefits

Visteon retirees appeal decision on benefits

DOVER, Del. — Attorneys for retired Visteon workers are appealing a bankruptcy judge’s order allowing the auto parts supplier to terminate their health and life insurance benefits.

A notice of appeal was filed Thursday in federal court in Delaware, and the case will now be referred for mediation.

Attorneys for retired union workers question whether the order was proper, given that Visteon did not first negotiate with them, and that the court did not consider whether Visteon made a significant showing that the benefits were not vested.

Visteon, a former subsidiary of Ford Motor Co., filed for bankruptcy protection in May. The company based in Van Buren Township, Mich., said the benefits for some 8,000 retirees represented a $310 million liability and a significant obstacle to a successful reorganization.