Judge delays hearing in Visteon bankruptcy after 2 groups say they have better idea

Visteon reorganization plan challenged

WILMINGTON, Del. — A bankruptcy judge has delayed arguments on whether to approve the disclosure statement outlining auto parts supplier Visteon’s proposed reorganization plan.

The judge in Delaware continued Monday’s hearing until June 14 after two creditor groups said they can match Visteon’s preferred plan without the associated tens of millions of dollars in fees and expenses.

Visteon, a former subsidiary of Ford Motor Co., filed for bankruptcy protection in May 2009.

It has proposed giving a 95 percent stake in the company to senior noteholders if they can raise $1.25 billion to pay off secured lenders. Other bondholders would get the remaining 5 percent.

If senior noteholders can’t raise the money, Visteon would give the secured lenders 85 percent ownership with the rest going to noteholders.