Visteon Reorg Plan Wins Court OK
August 31, 2010
Visteon won court approval for its plan of reorganization, the Van Buren Township, Mich.-based auto parts maker announced Tuesday. The company expects to exit bankruptcy by Oct. 1.
The U.S. Bankruptcy Court in Wilmington, Del. approved the plan, which was supported by creditors and shareholders.
As part of its restructuring plan, the company obtained a $700 million exit facility that consists of a $500 million term loan and a $200 million revolver (LFN, Aug. 27, 2010). Price talk on the term loan is at Libor plus 625 bps, with a 1.75% Libor floor. The revolver, though, will be undrawn as the company emerges from Chapter 11. Morgan Stanley arranged the facility.
The company’s reorganization plan includes a rights offering to bondholders (LFN, June 18, 2010). Under the plan, term lenders’ $1.6 billion secured claim would be converted to equity, representing 85% of the company’s common stock after the reorganization. Senior note holders would receive about half the value of their claims, and the remaining creditors would receive approximately 20% of their claims.
Visteon filed for bankruptcy on May 28, 2009.
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