Visteon has filed a motion with the U.S. bankruptcy court seeking approval to sell two of its plants to Johnson Controls and Johnson Controls Automotriz Mexico. The
Detroit Free Press has reported that the two plants are being sold for $17 million.
The plants are being sold as part of Visteon’s effort to realign its business relationship with Chrysler in conjunction with its bankruptcy reorganization.
According to a report from
BankruptcyData.com, the motion states, “The proposed sale of Visteon’s Highland Park, Mich., and Saltillo, Mexico, facilities…continues Visteon’s realignment of its business relationship with Chrysler Group LLC…in furtherance of Visteon’s long-term business plan. Pursuant to the accommodation agreement entered into by Visteon and Chrysler and approved by this Court in November 2009…, Chrysler agreed to resource certain interior component parts production lines that are no longer beneficial to Visteon, including all Chrysler component parts production at the Sale Plants. As a mechanism to facilitate the wind-down of these operations and Visteon’s exit from the Sale Plants, which are not a part of Visteon’s long-term business plan, the Chrysler Accommodation Agreement provides Chrysler with the ability to designate the Sale Plants as facilities to be marketed and sold as going concerns to a purchaser willing to pay at least a minimum threshold price for the assets and inventory of the Sale Plants.”
The court will consider the motion at an April 13 hearing.