Visteon Corporation (VC)

[Gileon7]

Appeals court overrules Sontchi. Here is part of an article by Randall Chase, and AP business writer. Entire article: http://finance.yahoo.com/news/Ruling-on-Visteon-retiree-apf-1593969376.html?x=0&sec=topStories&pos=1&asset=&ccode=

In overturning two lower court decisions, a three-judge panel of the 3rd U.S. Circuit Court of Appeals in Philadelphia unanimously agreed with attorneys representing some 2,100 retirees from two Visteon manufacturing plants in Indiana that the company could not unilaterally terminate their benefits.

After revisiting the issue at a hearing in March, U.S. Bankruptcy Judge Christopher Sontchi stood by his earlier determination that the retirees did not have vested rights in the benefits and that Visteon could terminate them unilaterally. A somber Sontchi acknowledged the impact on retirees of his decision, which was later upheld by a federal district judge in Delaware, but said delaying implementation of his order while the retirees filed an appeal would simply be "further delay of the inevitable."

A Visteon attorney also said at the March hearing that an appeal was bound to fail.

But the appeals court rejected Visteon's argument that the provisions of the bankruptcy code upon which the retirees were relying amounted to a "hammer" being used against it.

"It is much more accurately characterized as a 'microphone,' intended to elevate the voices of those who would otherwise not be heard above the din of more powerful creditors carving up the pie of the bankruptcy estate," wrote Chief Judge Theodore McKee.

I hope the AHEC's and other appeals find their way to this panel, Which may take the same approach towards equity. Sontchi refused an official EC, he refused an examiner, he sure as sure can be didn't give equity a microphone.