Visteon requests exclusivity extension to coincide with plan hearing

By Caroline Salls

Pittsburgh, June 29 - Visteon Corp. requested an extension to its exclusive periods for filing and soliciting votes on its plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend its exclusive plan-filing period to Oct. 15 from June 29 and the solicitation period to Dec. 15 from Aug. 29.

As previously reported, Visteon has received court approval of its disclosure statement and the various agreements related to its proposed toggle plan, including an equity commitment agreement and plan support agreement under which a group of bondholders have agreed to provide a $1.25 billion capital infusion.

If this group of bondholders fails to raise a junior capital infusion, the company said they have agreed to accept a plan and an allocation of the reorganized company's equity they have consistently opposed.

In addition, Visteon said its secured lenders "will have for the taking a plan and an equity split identical to one they vigorously and publicly supported."

The company said the toggle plan has the support of more than two-thirds in amount of the bondholder classes and its official committee of unsecured creditors.

According to the motion, the court has reserved Aug. 25 to begin a potentially truncated confirmation hearing if all impaired classes, including equity holders, vote in favor of the plan. However, it has also set a confirmation hearing schedule to allow for a 10-day contested valuation hearing to begin on Sept. 28.

As a result, the company said it is seeking the exclusivity extension to coincide with the plan confirmation hearing schedule.

"Having maintained their exclusivity periods to date, the debtors have shepherded these Chapter 11 cases to the cusp of a potentially consensual confirmation of their plan, which now offers a recovery to current Visteon's equity holders if the equity class votes in favor of the plan," Visteon said in the motion.

A hearing is scheduled for July 15.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.