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Visteon shareholders want committee of equity security holders formed
By Lisa Kerner
Charlotte, N.C., April 19 - Visteon Corp. shareholders Cypress Management Master, LP, Lenado Capital Advisors LLC and Goshawk Capital Corp. asked the court to appoint an official committee of equity security holders, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.
The shareholders hold approximately 2.2% of Visteon's outstanding common stock and believe "there is equity value in the company that the debtors are trying to extinguish," the filing said.
The company's noteholders and related backstop parties are working on an alternative plan involving an equity commitment of least a $950 million.
A hearing is set for April 30.
As previously reported, Visteon said it is exploring a toggle plan that would eliminate uncertainty associated with a rights offering-based plan and avoid costly litigation.
After filing a plan on March 15, Visteon said it has continued to respond to diligence requests of its bondholders and official committee of unsecured creditors to facilitate their formulation of an alternative plan structure that is premised on a rights offering backstopped by some of the bondholders.
Prospect News reported that under the proposed toggle plan, if the company's bondholders deliver a promised cash infusion through direct subscription to the rights offering, the exercise of a backstop or a combination of the two, then Visteon will move forward with the bondholders' rights offering structure.
Visteon, a Van Buren Township, Mich., global automotive supplier, filed for bankruptcy on May 28, 2009. Its Chapter 11 case number is 09-11786.
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