Visteon steering committee, term loan agent agree to support plan

By Caroline Salls

Pittsburgh, July 28 - Visteon Corp. has signed a letter agreement with a steering committee of its term loan lenders and the term loan agent under which the steering committee and agent affirmed their support of the company's fourth amended plan of reorganization, according to a company news release.

Under the agreement, holders of about 55% of the outstanding amount of the $1.5 billion term loan agreed to vote in favor of the plan and to formally recommend that the remaining term loan lenders vote in favor of the plan.

Term loan agent Wilmington Trust has also agreed to cease all plan confirmation-related litigation efforts if the term lender class accepts the plan. The agent has also agreed to withdraw its pending appeal of Visteon's equity commitment and bondholder plan support agreements.

In addition, the agent will "provide affirmative support of the plan" throughout the bankruptcy case if the term lender class accepts the plan.

As part of the letter agreement, Visteon acknowledged that the plan will provide the term lenders with post-bankruptcy interest at the default rate and will support the compensation for professional fees and expenses.

The company has also acknowledged that if the term lender class votes in favor of the plan, Visteon will not seek reinstatement of the term loan.

Visteon, a Van Buren Township, Mich., global automotive supplier, filed for bankruptcy on May 28, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-11786.

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