Visteon eyes settlement agreement with Ford, Automotive Components

By Lisa Kerner

Charlotte, N.C., Sept. 27 - Visteon Corp. asked the court to approve a settlement and release agreement with Ford Motor Co. and Automotive Components Holdings, LLC, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is requested for Sept. 29.

The agreement addresses, among other things:

• The termination of Visteon's obligations to reimburse Ford for certain pension and retiree benefit costs - liabilities totaling $105 million on Visteon's balance sheet;

• Resolution of nearly all existing and potential claims and disputes between the parties;

• Reimbursement by Ford of up to $29 million to Visteon for costs associated with restructuring initiatives in various parts of the world; and

• A commitment by Ford and its affiliates to source Visteon new and replacement business totaling approximately $600 million in annual sales for vehicle programs launching through 2013.

As previously reported, Visteon said it expects to emerge from Chapter 11 bankruptcy by Oct. 1. The court confirmed the company's plan of reorganization on Aug. 31.

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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