Visteon has filed a second amended reorganisation plan, under which certain unsecured bondholders would receive 95% of the equity of the reorganised company, in exchange for US$1.25bn in cash raised through a rights offering.
The plan, filed with the US Bankruptcy Court in Delaware, consisted of two sub-plans. General unsecured creditors would receive a cash payout under both of them.
However, it would still leave bondholders and other general unsecured creditors “substantially impaired”, and did not provide for any recovery to holders of the company’s equity, Visteon said.
The second amended plan also consisted of a claims conversion sub-plan, under which the term loan lenders would receive about 85% of the equity in a reorganised Visteon and unsecured bondholders would receive about 15% of equity.
Visteon’s net profit rose to US$233m for the first quarter of 2010 from US$2m a year earlier because of higher volume, cost cutting and a US$237m one-time gain from terminating some retiree benefits.
The parts maker filed for bankruptcy last May and is seeking court approval of its reorganisation plan.
Visteon’s full statement here