DOVER, Del. (AP) -- Auto parts supplier Visteon has agreed to give senior noteholders control of the company if they can raise more than $1 billion to pay off secured lenders.
A revised bankruptcy reorganization plan filed in Delaware calls for a $300 million purchase commitment and a $950 million stock rights offering that would leave noteholders with a 95 percent stake in Visteon.
Other bondholders would share in the remaining 5 percent, as well as $50 million in cash, up to 40 percent of their allowed claims. Unsecured creditors would share $141 million cash, up to half of their allowed claims.
If the plan doesn\'t raise enough money to pay secured lenders, those lenders would receive roughly 85 percent of the new stock, with the rest going to noteholders.