UPDATE 1-Visteon files second amended plan of reorganization

* Certain unsecured bondholders to get 95 pct of equity

* Equity for $1.25 bln cash raised through rights offering

* Plan leaves bondholders, unsecured creditors “impaired”

May 7 (BestGrowthStock) – Auto-parts maker Visteon Corp (VSTNQ.PK: )
said it filed a second amended reorganization plan, wherein
certain unsecured bondholders would receive 95 percent of the
equity of the reorganized company, in exchange for $1.25 billion
in cash raised through a rights offering.

The plan, filed with the U.S. Bankruptcy Court in Delaware,
consisted of two sub-plans, under both of which the other
general unsecured creditors would receive a cash payout.

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 percent of the equity in reorganized Visteon
and unsecured bondholders would receive about 15 percent of
equity.

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(Reporting by Brenton Cordeiro in Bangalore; Editing by Jon
Loades-Carter)

UPDATE 1-Visteon files second amended plan of reorganization