Visteon rejects $1.2 billion Johnson Controls offer

Auto-parts maker Visteon Corp. rejected the unsolicited offer from Johnson Controls Inc. to buy the interiors and electronics business for $1.25 billion.

In a statement yesterday, Visteon said the offer "would not significantly enhance recoveries to our creditors." Visteon also said a sale to Johnson Controls would "leave equity holders further removed from any recovery" and might require a "lengthy extension" of the time in Chapter 11.

Visteon filed for reorganization in May 2009, listing assets of $4.6 billion against debt totaling $5.3 billion. Sales in 2008 were $9.5 billion, including $3.1 billion to Ford Motor Co. Visteon, based in Van Buren Township, Michigan, was spun off from Ford in 2000.

Visteon at the outset owed $2.7 billion for borrowed money, including $1.5 billion on a secured term loan, $862 million on unsecured bonds and $214 million on other debt obligations.

The case is In re Visteon Corp., 09-11786, U.S. Bankruptcy Court, District of Delaware (Wilmington).