Bankrupt autoparts maker Visteon has filed a reorganisation plan under which secured term loan lenders would end up with 96.2% of the shares in the new company.
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In documents filed with the US Bankruptcy Court in Delaware, Visteon, whose biggest customer is former parent Ford, said it would issue new common stock and secured debt in full settlement of the secured term loan lenders’ claims. Unsecured lenders would receive nothing, Reuters reported.
Visteon said in the court documents that the Pension Benefit Guaranty Corp (PBGC), which provided protection for a pension that covered more than 5,300 former employees, would receive 12% recovery of their claim, which would equate to about 3.8% ownership of the reorganised company.
Pension plans, excluding the Visteon UAW Account Pension Plan would be terminated, Visteon said.
Visteon, which was spun off from Ford in 2000, filed for bankruptcy protection in June. It relies on Ford for nearly 30% of its sales.
