Visteon creditors committee wants consideration of alternatives to company reorganization plan

Visteon creditors want alternative plan

DOVER, Del. — The creditors committee in the Chapter 11 bankruptcy of auto parts maker Visteon is asking a judge to allow consideration of alternatives to the company’s reorganization plan.

The committee said in a Wednesday court filing that the revised plan submitted by Visteon last month was an attempt to ambush competing proposals from the committee and a group of unsecured noteholders.

The committee argues that a contentious confirmation hearing on Visteon’s plan could be avoided if the court allows creditors to consider the alternative proposals simultaneously.

Visteon’s revised plan gives unsecured creditors more than its original plan did, but it still leaves term loan lenders 85 percent of the equity in the new company in return for erasing $1.6 billion in debt.