VAN BUREN TOWNSHIP, Mich. — BankruptcyData.com has reported that the Pension Benefit Guaranty Corp. (PBGC) and official committee of unsecured creditors have filed with the U.S. Bankruptcy Court separate objections in Visteon’s Chapter 11 case. They are objecting to Visteon’s motion for entry of an order (A) authorizing the Debtors to obtain senior super-priority, priming post-petition financing, (B) granting priming and other liens and super-priority administrative expense claims, (C) granting adequate protection to pre-petition secured parties, (D) authorizing the use of cash collateral and (E) modifying the automatic stay.

The PBGC objection states, “PBGC generally supports the Committee Objection. In particular, PBGC stands with the Committee against the Debtors’ unwarranted and unreasonable efforts to grant the Prepetition Term Agent and Prepetition Term Lenders (collectively, the ‘Term Lenders’) an adequate protection guarantee and additional adequate protection liens in the unencumbered assets of Visteon Electronics Corporation (‘VEC’). In view of the Debtors’ strong performance in Chapter 11 and substantial progress towards plan confirmation, these Chapter 11 cases simply do not present the type of exigent circumstances or value deterioration that would justify the granting of additional liens against substantial unencumbered assets as adequate  protection for the Term Lenders’ prepetition claims, and the granting of a guarantee in support of the Term Loan Obligations effectively constitutes an impermissible cross-collateralization of such obligations. Moreover, there are no benefits that would accrue to the VEC chapter 11 estate that could justify the prejudice that would result to PBGC, as the largest (and possibly only non-insider) creditor of VEC.”

Visteon filed for Chapter 11 bankruptcy protection in May in the U.S. Bankruptcy Court for the District of Delaware.