VAN BUREN TOWNSHIP, Mich. -- Visteon has filed a second amended plan of reorganization and disclosure statement with the U.S. Bankruptcy Court for the District of Delaware.

The second amended plan of reorganization consists of two mutually exclusive sub-plans:

• A rights offering sub-plan under which certain unsecured bondholders would have the opportunity to receive 95 percent of the equity in reorganized Visteon in exchange for $1.25 billion in cash raised through a backstopped equity rights offering. The remaining 5 percent in equity would be distributed among unsecured bondholders. Unsecured bondholders unable to participate in the rights offering pursuant to securities laws would also be provided with a cash recovery under the plan in lieu of receiving rights to participate in the rights offering. Secured lenders would be paid in full from proceeds from the capital raise and exit financing as outlined in the plan;

• A claims conversion sub-plan, similar to the plan filed by Visteon on March 15, under which the term loan lenders would receive approximately 85 percent of the equity in reorganized Visteon and unsecured bondholders would receive approximately 15 percent of the equity.

Under both sub-plans the other general unsecured creditors would receive a cash payout.

Under the second amended plan, Visteon would retain its U.S. defined benefit pension plans. The second amended plan still leaves bondholders and other general unsecured creditors substantially impaired and does not provide for any recovery to holders of Visteon's equity.

Visteon said holders of more than two-thirds of the aggregate face amount of the company's bonds have executed plan support agreements in favor of the second amended plan. While the steering committee of term lenders has not yet indicated a willingness to support the second amended plan, the company noted that the term lenders would be paid in full, in cash, including accrued pre-petition and post-petition interest, and would thereby be unimpaired under the rights offering sub-plan and would be receiving virtually identical treatment under the claims conversion sub-plan to that which they unanimously supported under the first amended plan filed on March 15.

The company intends to seek approval of its second amended disclosure statement as soon as possible. When the disclosure statement is approved, the company said it will begin soliciting acceptances of the amended plan of reorganization promptly thereafter and seek its confirmation by the court in late July or early August.