UPDATE 2-Visteon seeks court OK for $700 mln exit financing

* Morgan Stanley lead arranger for financing

* Visteon wants to emerge from bankruptcy this fall

* Hyundai, Ford are its biggest customers
(Adds details on exit financing, background on the bankruptcy

DETROIT, Aug 26 (BestGrowthStock) – U.S. auto parts supplier
Visteon Corp (VSTNQ.PK: ) has asked a federal bankruptcy court to
approve $700 million in financing so it can exit its 15-month
bankruptcy, court documents filed on Wednesday show.

A hearing before the U.S. Bankruptcy Court in Delaware is
to be held next Tuesday to confirm the plan.

Visteon plans to emerge from bankruptcy in late September
or early October based on a confirmation of the plan on Tuesday
and meeting other requirements, Visteon spokeswoman Julie Fream

Morgan Stanley was selected as lead arranger for the exit
financing, which includes a $500 million senior secured term
loan and $200 million of senior secured asset-based revolving
credit, according to papers filed with the court.

Reuters first reported the exit financing details earlier
in August based on sources with knowledge of the matter.

Visteon, the former parts unit that Ford Motor Co (F.N: )
spun off in 2000, filed for court protection in May 2009 as the
economic downturn pushed auto sales to the lowest levels in
three decades and automakers General Motors (GM.UL: ) and
Chrysler fell into government-supported bankruptcies.

The company restructured operations and cleaned its balance
sheet in bankruptcy. Visteon sales rose 32 percent to $3.85
billion in the first half of 2010 from the first half of 2009
and it posted a $32 million net profit.

Visteon, which produces electronics, lighting and interior
components for autos, rejected an unsolicited $1.25 billion
cash bid from Johnson Controls Inc (JCI.N: ) for most of the
company’s assets three months ago.

Ford and Hyundai Motor Co (005380.KS: ) are Visteon’s biggest
customers, comprising nearly 30 percent each of its sales,
Fream said.

Visteon said the subscription period for its rights
offering ended on July 30, and that its eligible unsecured
noteholders delivered checks for more than $1.06 billion into

The amount exceeds the $950 million equity rights offering
upon which Visteon’s primary reorganization plan is premised,
the filing said on Wednesday.

The case is Visteon Corp, U.S. Bankruptcy Court, District
of Delaware, No. 09-11786.
(Reporting by Bernie Woodall in Detroit and Santosh Nadgir in
Bangalore; Editing by Gopakumar Warrier and Robert MacMillan)

UPDATE 2-Visteon seeks court OK for $700 mln exit financing