Visteon seeks court OK for $700 mln exit financing 08/26 07:17 AM
* Morgan Stanley lead arranger for financing
* Visteon (VSTNQ:$0.5355,$0.0305,6.04%) wants to emerge from bankruptcy this fall
* Hyundai, Ford are its biggest customers (Adds details on exit financing, background on the bankruptcy case)
DETROIT, Aug 26 (Reuters) - U.S. auto parts supplier Visteon Corp (VSTNQ:$0.5355,$0.0305,6.04%) has asked a federal bankruptcy court to approve $700 million in financing so it can exit its 15-month bankruptcy, court documents filed on Wednesday show.
A hearing before the U.S. Bankruptcy Court in Delaware is to be held next Tuesday to confirm the plan.
Visteon (VSTNQ:$0.5355,$0.0305,6.04%) plans to emerge from bankruptcy in late September or early October based on a confirmation of the plan on Tuesday and meeting other requirements, Visteon (VSTNQ:$0.5355,$0.0305,6.04%) spokeswoman Julie Fream said.
Morgan Stanley was selected as lead arranger for the exit financing, which includes a $500 million senior secured term loan and $200 million of senior secured asset-based revolving credit, according to papers filed with the court.
Reuters first reported the exit financing details earlier in August based on sources with knowledge of the matter.
Visteon (VSTNQ:$0.5355,$0.0305,6.04%) , the former parts unit that Ford Motor Co (F:$11.37,00$0.0500,0.44%) spun off in 2000, filed for court protection in May 2009 as the economic downturn pushed auto sales to the lowest levels in three decades and automakers General Motors and Chrysler fell into government-supported bankruptcies.
The company restructured operations and cleaned its balance sheet in bankruptcy. Visteon (VSTNQ:$0.5355,$0.0305,6.04%) sales rose 32 percent to $3.85 billion in the first half of 2010 from the first half of 2009 and it posted a $32 million net profit.
Visteon (VSTNQ:$0.5355,$0.0305,6.04%) , which produces electronics, lighting and interior components for autos, rejected an unsolicited $1.25 billion cash bid from Johnson Controls Inc (JCI:$27.014999,$0.135000,0.50%) for most of the company's assets three months ago.
Ford and Hyundai Motor Co (HYMLF:$66.6000,$0.0000,0.00%) are Visteon's (VSTNQ:$0.5355,$0.0305,6.04%) biggest customers, comprising nearly 30 percent each of its sales, Fream said.
Visteon (VSTNQ:$0.5355,$0.0305,6.04%) said the subscription period for its rights offering ended on July 30, and that its eligible unsecured noteholders delivered checks for more than $1.06 billion into escrow.
The amount exceeds the $950 million equity rights offering upon which Visteon's (VSTNQ:$0.5355,$0.0305,6.04%) primary reorganization plan is premised, the filing said on Wednesday.
The case is Visteon Corp (VSTNQ:$0.5355,$0.0305,6.04%) , U.S. Bankruptcy Court, District of Delaware, No. 09-11786. (Reporting by Bernie Woodall in Detroit and Santosh Nadgir in Bangalore; Editing by Gopakumar Warrier and Robert MacMillan)
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