The claims are made by Aurelius Capital Master and two related investors in the Wilmington bankruptcy court, who asked the court to reject the proposed reorganization plan, agreed by Visteon with its lenders, Autonews reported.
The plan, currently under review, calls for cutting the company's debt by giving lenders 85 percent of the company. The rest is to be split with note-holders and other unsecured creditors. Following the emergence from bankruptcy, 10 percent of the stock would be reserved for the company's executives.
This is not the first attempt made by Visteon's management to secure what appears to be some type of advantages for the managing team. In July last year, Ford had to step in and oppose an employee incentive program which called for $80.3 million in bonuses to be handed to employees to "insure their good performance through the bankruptcy process."
In August 2009, Visteon submitted a proposal to cut health-care insurance for about 7,700 retirees and employees, asking at the same time approval to start paying $30.1 million in bonuses to top managers.
Visteon, the auto parts maker which was once a Ford division, entered bankruptcy in May last year, after operating without any profit for the past nine years.
In the bankruptcy papers, Visteon listed total assets amounting to $4.58 billion and a total debt of $5.32 billion.
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