Visteon gets court OK of $37 million sale of equity in Alabama debtor

By Jennifer Lanning Drey

Portland, Ore., July 17 - Visteon Corp. obtained court approval of the $37 million sale of debtor Visteon Domestic Holdings, LLC's 80% equity interest in debtor Halla Climate Systems Alabama Corp., according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The purchaser is Halla Climate Control Corp., whose wholly owned subsidiary owns the other 20% of Halla Alabama's equity.

Under the agreement, Halla Climate Control will pay Visteon $37 million, plus make a $26 million cash payment to satisfy an intercompany loan made by Visteon to Halla Alabama.

As previously reported, Halla Climate Control is a non-debtor foreign affiliate of Visteon.

Halla Alabama operates a 135,000-square-foot manufacturing facility responsible for manufacturing and supplying Hyundai with front-end modules and heating and air conditioning units. Hyundai represents nearly all of the company's total sales volume.

However, since Visteon filed for bankruptcy, Hyundai has expressed concerns regarding Halla Alabama's debtor status and ability to maintain an uninterrupted supply of goods.

Visteon said the sale of its interest to Halla Climate Control would preserve the key relationship.

Visteon, a Van Buren Township, Mich., global automotive supplier, filed for bankruptcy on May 28. Its Chapter 11 case number is 09-11726.

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