Judge in Visteon bankruptcy asked to approve documents describing proposed reorganization plan
By Randall Chase, APMonday, June 14, 2010
Judge weighs Visteon bankruptcy disclousre
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.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
WILMINGTON, Del. (AP) — 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.
Tags: Delaware, North America, United States, Wilmington