Agreement makes Visteon bankruptcy exit easier
After a long dispute with former employees, Visteon has reached an agreement that will allow it to more easily exit bankruptcy in the near future.
The auto parts manufacturer had bickered with retirees who wanted to keep their health benefits after it exited bankruptcy, but the new settlement will allow it to emerge from Chapter 11 under the control of its bondholders.
According to a report from Bloomberg, Visteon and a group of retirees agreed to a deal that will pay $12 million to the unions that represent more than 6,000 former workers. It will also allow the company to cut benefits down the road. With that out of the way, the company can now proceed with its bankruptcy exit plan, which will clear more than $2 billion in debt.
The company won approval of its exit plan from major shareholders and lenders, and also raised more than $1.3 billion by selling stock, the report said. Initially, some investors opposed the reorganization, and 76 percent voted to approve the plan.
Earlier this month, a judge told Visteon that it must restore health and life insurance benefits for the retirees, an AP report said.
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