VAN BUREN TOWNSHIP, Mich. — The Associated Press (AP) has reported that Visteon Corp. has asked a bankruptcy judge for more time to work on its plan to emerge from Chapter 11. The supplier has asked for permission to file its Chapter 11 reorganization plan after the Friday deadline.
The company has met with its various lenders and creditors to present its business plan but wants to wait on a ruling regarding retiree health care and insurance benefits before submitting its plan of reorganization. The ruling involves about $310 million in potential retiree benefit liabilities, according to the AP.
In other related news, Bloomberg has reported that Visteon will cut its proposed executive bonus plan by $69 million. At one-seventh of its original size, Visteon’s bonus plan would pay managers and key employees up to $11.4 million, post-bankruptcy.
According to the Bloomberg report, Visteon agreed to cut back the program after creditors complained that the program was “too rich.” The original plan aimed to pay bonuses to more than 2,500 employees; the revised plan includes only 95 employees, including the 12-member board of directors.
