Visteon files amended plan of reorganization providing recovery for holders of interests

By Jennifer Lanning Drey

Portland, Ore., June 14 - Visteon Corp. filed a fourth-amended plan of reorganization and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware.

Under the amended plan, holders of interests in Visteon will receive their share of old equity warrants and 1.94% of the distributable equity under the plan, provided they vote in favor of the plan.

As previously reported, Visteon's amended plan consists of two mutually exclusive sub-plans.

Under a rights offering sub-plan, some unsecured bondholders would have the opportunity to receive 95% of the equity in reorganized Visteon in exchange for $1.25 billion in cash raised through a backstopped equity rights offering, and the remaining 5% or 4.8% in equity would be distributed among unsecured bondholders.

Unsecured bondholders unable to participate in the rights offering under securities laws would also be provided with a cash recovery under the plan in lieu of receiving rights to participate in the rights offering.

Secured lenders would be paid in full from proceeds from the capital raise and exit financing.

Under a claims conversion sub-plan, which is similar to the plan filed on March 15, the term loan lenders would receive 85% of the equity in reorganized Visteon and unsecured bondholders would receive 15% of the equity.

Under both sub-plans, other general unsecured creditors would receive a cash payout and holders of Visteon's equity would receive no recovery.

Visteon would retain its U.S. defined benefit pension plans.

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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