WILMINGTON, Del. (AP) — Auto parts supplier Visteon is asking a Delaware judge to approve documents describing its proposed reorganization plan and how creditors would vote on it.
But the judge began a hearing Friday by denying a request to delay implementation of his order allowing Visteon's unsecured bond holders to sponsor a stock rights offering for the reorganized company.
The request was made by secured lenders who are fighting the bond holders for control of the reorganized company and appealing the judge's approval of a deal under which the bond holders would arrange $1.25 billion in financing for Visteon to emerge from bankruptcy.
The lenders and some shareholders argue that Visteon's deal with the bond holders could cost the company more than $100 million in unnecessary fees.