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Visteon creditors targeting Ford
Visteon creditors targeting Ford
Posted on Thursday, December 17th, 2009 at 2:52 PM EST.(Employee News)
A committee that represents unsecured creditors in Visteon Corp.’s bankruptcy case is investigating the history of the supplier’s relationship with its former parent, Ford Motor Co., to see whether Ford could be held financially responsible for the supplier’s financial distress, according to court records filed this week, the Detroit Free Press reported.
The committee is asking a judge to order the release of documents related to Visteon’s spin-off from Ford in 2000 and several agreements between the two companies since then, the paper said. “Since the spin-off transaction, there has been no semblance of arm’s length bargaining between Visteon and Ford,” the committee said in court documents quoted by the Free Press. “Ford appears to have utilized its insider status to control Visteon to Visteon’s detriment.”
Creditors committees are bound to recover as much money as possible for their clients, the story said. It is common for these groups to look into transactions that took place before a bankruptcy filing to see whether the insolvent company was short-changed, bankruptcy lawyers told the paper. (Detroit Free Press)
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Rick
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