Visteon equity holders appeal plan confirmation order, stay denied

By Caroline Salls

Pittsburgh, Sept. 9 - Visteon Corp. equity holders Mark Taub and Andrew Shirley have appealed the court order confirming the company's plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

In addition, the shareholders asked the court to stay the plan confirmation pending outcome of their appeal. However, the stay motion was denied on Thursday.

Taub and Shirley said the plan cannot be confirmed because it treats holders of class J interests who are members of an informal committee of equity holders better than class J interest holders who are not members of the committee by allowing them to participate in a rights offering.

"The ordinary shareholders were not aware of their disparate treatment when they voted for (or against) the plan," Taub and Shirley said in the stay motion.

"It is entirely likely that even more ordinary shareholders would have voted against the plan had they known they were being treated so unfairly."

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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