Visteon's committee of unsecured creditors pushes for alternate plan

By Lisa Kerner

Charlotte, N.C., March 31 - Visteon Corp.'s official committee of unsecured creditors wants the court to terminate the company's exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is scheduled for April 13.

The committee wants to file and seek approval of an alternate plan in part because it objects to the debtors' "abrupt about face" whereby they aligned themselves with the term lenders in an amended plan.

The timing of the filing of the amended plan and the related plan support agreement "smacks of ambush" and will likely lead to a costly, protracted confirmation battle "that could be avoided by allowing for parallel path plans," the filing said.

According to the filing, the amended plan ignores the debtors' ample ability to pay down or refinance their prepetion term loan and thus preserve value for Visteon's general unsecured claimants.

As previously reported, the court extended Visteon's exclusive plan-filing period to April 30 from Feb. 22 and the solicitation period to from July 30 from April 23.

Visteon, a Van Buren Township, Mich., global automotive supplier, filed for bankruptcy on May 28, 2009. Its Chapter 11 case number is 09-11786.

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