WILMINGTON, Del. (AP) — A bankruptcy judge in Delaware has approved key financial arrangements between auto parts supplier Visteon Corp. and bond holders who are fighting secured lenders for control of the company.
But the judge cautioned that approval of the agreements, which were challenged by secured lenders and Visteon shareholders, does not mean approval of Visteon's reorganization plan is a foregone conclusion.
The judge's approval of the plan support agreement and equity commitment agreement with senior bond holders does mean the bond holders can be paid fees and expenses of more than $20 million.
The judge scheduled a hearing on the disclosure statement describing Visteon's overall reorganization plan. The disclosure statement must be approved before creditors can vote on it.