Attached files
file | filename |
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8-K - FORM 8-K - VISTEON CORP | k49285e8vk.htm |
EX-99.2 - EX-99.2 - VISTEON CORP | k49285exv99w2.htm |
Exhibit 99.1
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
FOR THE DISTRICT OF DELAWARE
) | ||||
In re: |
) | Chapter 11 | ||
) | ||||
VISTEON CORPORATION, et al.,1 |
) | Case No. 09-11786 (CSS) | ||
) | ||||
) | Jointly Administered | |||
Debtors. |
) | |||
) |
THIRD AMENDED JOINT PLAN OF REORGANIZATION
OF VISTEON CORPORATION AND ITS DEBTOR AFFILIATES
PURSUANT TO CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE
OF VISTEON CORPORATION AND ITS DEBTOR AFFILIATES
PURSUANT TO CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE
PACHULSKI STANG ZIEHL & JONES LLP
|
KIRKLAND & ELLIS LLP | |
Laura Davis Jones (DE Bar No. 2436)
|
James H. M. Sprayregen, P.C. (IL 6190206) | |
James E. ONeill (DE Bar No. 4042)
|
James J. Mazza, Jr. (IL 6275474) | |
Mark M. Billion (DE Bar No. 5263)
|
Sienna R. Singer (IL 6287154) | |
919 North Market Street, 17th Floor
|
300 North LaSalle | |
Wilmington, Delaware 19899-8705
|
Chicago, Illinois 60654 | |
Telephone: (302) 652-4100
|
Telephone: (312) 862-2000 | |
Marc Kieselstein, P.C. (IL 6199255) | ||
Brian S. Lennon (NY 4215083) | ||
601 Lexington Avenue | ||
New York, New York 10022-4611 | ||
Telephone: (212) 446-4800 |
Attorneys for the Debtors and Debtors in Possession
Dated: May 24, 2010
Dated: May 24, 2010
1 | The Debtors in these chapter 11 cases, along with the last four digits of each Debtors federal tax identification number, are: Visteon Corporation (9512); ARS, Inc. (3590); Fairlane Holdings, Inc. (8091); GCM/Visteon Automotive Leasing Systems, LLC (4060); GCM/Visteon Automotive Systems, LLC (7103); Infinitive Speech Systems Corp. (7099); MIG-Visteon Automotive Systems, LLC (5828); SunGlas, LLC (0711); The Visteon Fund (6029); Tyler Road Investments, LLC (9284); VC Aviation Services, LLC (2712); VC Regional Assembly & Manufacturing, LLC (3058); Visteon AC Holdings Corp. (9371); Visteon Asia Holdings, Inc. (0050); Visteon Automotive Holdings, LLC (8898); Visteon Caribbean, Inc. (7397); Visteon Climate Control Systems Limited (1946); Visteon Domestic Holdings, LLC (5664); Visteon Electronics Corporation (9060); Visteon European Holdings Corporation (5152); Visteon Financial Corporation (9834); Visteon Global Technologies, Inc. (9322); Visteon Global Treasury, Inc. (5591); Visteon Holdings, LLC (8897); Visteon International Business Development, Inc. (1875); Visteon International Holdings, Inc. (4928); Visteon LA Holdings Corp. (9369); Visteon Remanufacturing Incorporated (3237); Visteon Systems, LLC (1903); Visteon Technologies, LLC (5291). The location of the Debtors corporate headquarters and the service address for all the Debtors is: One Village Center Drive, Van Buren Township, Michigan 48111. |
TABLE OF CONTENTS
Page |
INTRODUCTION |
1 | |||
ARTICLE I. DEFINED TERMS AND RULES OF INTERPRETATION |
1 | |||
A. Defined Terms |
1 | |||
B. Rules of Interpretation |
17 | |||
ARTICLE II. ADMINISTRATIVE AND PRIORITY CLAIMS |
18 | |||
A. Administrative Claims |
18 | |||
B. Professional Claims |
18 | |||
C. DIP Facility Claims |
19 | |||
D. Priority Tax Claims |
19 | |||
ARTICLE III. CLASSIFICATION, TREATMENT, AND VOTING OF CLAIMS AND INTERESTS |
20 | |||
A. Sub Plans |
20 | |||
B. Classification of Claims and Interests |
20 | |||
C. Treatment of Classes of Claims and Interests |
21 | |||
D. Special Provision Governing Unimpaired Claims |
28 | |||
ARTICLE IV. PROVISIONS FOR IMPLEMENTATION OF THE PLAN |
28 | |||
A. General Settlement of Claims |
28 | |||
B. New Visteon Common Stock |
28 | |||
C. Registration Exemptions |
28 | |||
D. Subordination |
29 | |||
E. Vesting of Assets in the Reorganized Debtors |
29 | |||
F. Cancellation of Notes, Instruments, Certificates and Other Documents |
30 | |||
G. Issuance of New Securities; Execution of Plan Documents |
30 | |||
H. Acquisition of Assets Held by Oasis Trust |
30 | |||
I. Post-Confirmation Property Sales |
30 | |||
J. Corporate Action |
30 | |||
K. Certificate of Incorporation and Bylaws |
31 | |||
L. Effectuating Documents, Further Transactions |
31 | |||
M. Section 1146(a) Exemption |
31 | |||
N. Directors and Officers of Reorganized Visteon |
32 | |||
O. Directors and Officers of Reorganized Debtors Other Than Visteon Corporation |
32 | |||
P. Employee Benefits and Incentive Plans |
32 | |||
Q. Employment Agreement & Change in Control Agreements |
33 | |||
R. Intercompany Account Settlement |
33 | |||
S. Preservation of Rights of Action |
33 | |||
T. Restructuring Transactions |
34 | |||
U. Post-Effective Date Financing |
35 | |||
V. Corporate Existence |
35 |
i
TABLE OF CONTENTS (contd)
Page | ||||
W. Tax Reporting Matters |
35 | |||
ARTICLE V. RIGHTS OFFERING |
35 | |||
A. Election Form |
36 | |||
B. Issuance of Subscription Rights |
36 | |||
C. Oversubscription Rights |
36 | |||
D. Transfer Restriction |
36 | |||
E. Subscription Period and Mailing |
36 | |||
F. Exercise of Subscription Rights and Oversubscription Rights |
37 | |||
G. Direct Commitment |
37 | |||
H. Backstop Commitment |
37 | |||
I. Debtors Obligations under the Claims Conversion Sub Plan |
38 | |||
J. Issuance of Rights Offering Shares |
38 | |||
ARTICLE VI. ENTITLEMENT TO AND FUNDING OF CASH AMOUNT RECOVERIES |
38 | |||
A. Entitlement to Cash Amount Recoveries |
38 | |||
B. Source of Cash for Payment of Cash Amount |
39 | |||
C. Transfer of New Visteon Common Stock as a Consequence of Cash Amount
Distributions |
39 | |||
ARTICLE VII. TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES |
39 | |||
A. Rejection of Executory Contracts and Unexpired Leases |
39 | |||
B. Assumption of Executory Contracts and Unexpired Leases |
40 | |||
C. Indemnification Obligations |
41 | |||
D. Insurance Policies |
41 | |||
E. Cure of Defaults for Assumed Executory Contracts and Unexpired Leases |
41 | |||
F. Preexisting Obligations to the Debtors Under Executory Contracts and
Unexpired Leases |
42 | |||
G. Claims Based on Rejection of Executory Contracts or Unexpired Leases |
43 | |||
H. Contracts, Intercompany Contracts, and Leases Entered Into After the
Petition Date |
43 | |||
I. Reservation of Rights |
43 | |||
ARTICLE VIII. PROCEDURES FOR RESOLVING DISPUTED CLAIMS AND INTERESTS |
43 | |||
A. Allowance of Claims and Interests |
43 | |||
B. Claims and Interests Administration Responsibilities |
44 | |||
C. Estimation of Claims and Interests |
44 | |||
D. Expungement or Adjustment to Paid, Satisfied, or Superseded Claims and
Interests |
44 | |||
E. No Interest |
44 | |||
F. Disallowance of Claims or Interests |
44 | |||
G. Amendments to Claims |
45 | |||
H. No Distributions Pending Allowance |
45 | |||
I. Distributions After Allowance |
45 |
ii
TABLE OF CONTENTS (contd)
Page | ||||
ARTICLE IX. PROVISIONS GOVERNING DISTRIBUTIONS |
46 | |||
A. Distributions on Account of Claims Allowed as of the Effective Date |
46 | |||
B. Distributions on Account of Claims Allowed After the Effective Date |
48 | |||
C. Delivery of Distributions |
49 | |||
D. Claims Paid or Payable by Third Parties |
52 | |||
E. Setoffs |
53 | |||
F. Allocation Between Principal and Accrued Interest |
53 | |||
ARTICLE X. EFFECT OF CONFIRMATION OF THE PLAN |
53 | |||
A. Discharge of Claims and Termination of Interests |
53 | |||
B. Subordinated Claims |
54 | |||
C. Compromise and Settlement of Claims and Controversies |
54 | |||
D. Releases by the Debtors |
54 | |||
E. Releases by Holders of Claims and Interests |
55 | |||
F. Exculpation |
55 | |||
G. Injunction |
56 | |||
H. Protection Against Discriminatory Treatment |
56 | |||
I. Indemnification |
56 | |||
J. Recoupment |
56 | |||
K. Release of Liens |
57 | |||
L. Reimbursement or Contribution |
57 | |||
ARTICLE XI. CONDITIONS PRECEDENT TO CONSUMMATION OF THE PLAN |
57 | |||
A. Conditions Precedent to the Effective Date |
57 | |||
B. Waiver of Conditions Precedent |
58 | |||
C. Effect of Non-Occurrence of Conditions to Consummation |
58 | |||
ARTICLE XII. RETENTION OF JURISDICTION |
58 | |||
ARTICLE XIII. MISCELLANEOUS PROVISIONS |
60 | |||
A. No Stay of Confirmation Order |
60 | |||
B. Modification of Plan |
61 | |||
C. Revocation or Withdrawal of Plan |
61 | |||
D. Confirmation of the Plan |
61 | |||
E. Additional Documents |
61 | |||
F. Payment of Statutory Fees |
62 | |||
G. Dissolution of Creditors Committee |
62 | |||
H. Role of the Oversight Committee |
62 | |||
I. Reservation of Rights |
62 | |||
J. Successors and Assigns |
63 | |||
K. Service of Documents |
63 | |||
L. Term of Injunctions or Stays |
65 | |||
M. Entire Agreement |
65 | |||
N. Plan Supplement Exhibits |
65 | |||
O. Severability |
66 |
iii
TABLE OF CONTENTS (contd)
Page | ||||
EXHIBIT A Board Selection Term Sheet |
68 | |||
EXHIBIT B Warrant Agreement |
69 |
iv
INTRODUCTION2
Visteon Corporation and the other Debtors in the above-captioned Chapter 11 Cases jointly
propose the following Plan. Although proposed jointly for administrative purposes, the Plan
constitutes a separate plan of reorganization for each Debtor for the resolution of outstanding
Claims against, and Interests in, each Debtor pursuant to title 11 of the United States Code, 11
U.S.C. §§ 1011532. Each Debtor is a proponent of the Plan within the meaning of section 1129 of
the Bankruptcy Code. The classifications of Claims and Interests set forth in ARTICLE III hereof
shall be deemed to apply separately with respect to each Plan proposed by each Debtor, as
applicable. The Plan does not contemplate the substantive consolidation of any of the Debtors.
The Plan contemplates Confirmation and Consummation through either of the Rights Offering Sub Plan
or the Claims Conversion Sub Plan.
ARTICLE I.
DEFINED TERMS AND RULES OF INTERPRETATION
A. Defined Terms
1. 7.00% Senior Notes: The 7.00% senior notes due March 10, 2014, issued by Visteon
Corporation in the amount of $450,000,000 pursuant to the 7.00% Senior Notes Indenture.
2. 7.00% Senior Notes Claims: The Claims derived from or based upon the 7.00% Senior
Notes Indenture.
3. 7.00% Senior Notes Indenture: That certain supplemental indenture, dated as of
March 10, 2004, by and between Visteon Corporation and J.P. Morgan Trust Company, N.A., as trustee.
4. 8.25% Senior Notes: The 8.25% senior notes due August 1, 2010, issued by Visteon
Corporation in the amount of $700,000,000 pursuant to the 8.25% Senior Notes Indenture.
5. 8.25% Senior Notes Claims: The Claims derived from or based upon the 8.25% Senior
Notes Indenture.
6. 8.25% Senior Notes Indenture: That certain indenture, dated as of June 23, 2000,
by and between Visteon Corporation and Bank One Trust Company, N.A., as trustee, as amended.
7. 12.25% Senior Notes: The 12.25% senior notes due December 31, 2016, issued by
Visteon Corporation in the amount of $206,386,000 pursuant to the 12.25% Senior Notes Indenture.
2 | Capitalized terms used in this Introduction are defined in ARTICLE I herein. |
8. 12.25% Senior Notes Claims: The Claims derived from or based upon the 12.25%
Senior Notes Indenture.
9. 12.25% Senior Note Indenture: That certain second supplemental indenture, dated as
of June 18, 2008, by and among Visteon Corporation, the guarantors party thereto, and The Bank of
New York Trust Company, N.A., as trustee.
10. ABL Claim: Any Claim derived from or based upon the ABL Facility.
11. ABL Facility: The revolving credit facility set forth in the ABL Facility Credit
Agreement.
12. ABL Facility Administrative Agent: The Bank of New York Mellon, or its successor,
in its capacity as administrative agent under the ABL Facility.
13. ABL Facility Credit Agreement: That certain Credit Agreement, dated August 14,
2006, as amended, supplemented, or modified from time to time, between Visteon Corporation and each
subsidiary of Visteon Corporation party thereto, as borrowers, Ford Motor Company, as sole lender
and swingline lender, and the ABL Facility Administrative Agent.
14. ABL Lender: Ford Motor Company, in its capacity as a lender under the ABL
Facility.
15. Accommodation Agreements: Collectively, (a) that certain Letter Agreement among
the Debtors, a certain non-Debtor Affiliate, and General Motors Company, dated September 15, 2009,
approved by Final Order entered on October 7, 2009 [Docket No. 1102], (b) that certain
Accommodation Agreement, among the Debtors, a certain non-Debtor Affiliate, and Chrysler Group LLC,
dated October 2, 2009, approved by Final Order entered on November 12, 2009 [Docket No. 1305], (c)
that certain Accommodation Agreement, among the Debtors, their non-Debtor Affiliates and
subsidiaries, and Nissan North America, Inc., dated October 22, 2009, approved by Final Order
entered on November 12, 2009 [Docket No. 1307], (d) that certain Accommodation Agreement, by and
between Honda of America Mfg., Inc. and the Debtors, dated November 25, 2009, approved by Final
Order entered on December 10, 2009 [Docket No. 1446], and (e) that certain Facilities and
Accommodation Agreement, among Ford Motor Company, Automotive Components Holdings, LLC, and certain
Debtors and non-Debtor Affiliates, dated December 16, 2009, approved by Final Order entered on
December 10, 2009 [Docket No. 1441].
16. Accredited Investor: As defined in Rule 501 of Regulation D promulgated under the
Securities Act.
17. Ad Hoc Group of Noteholders: As defined in the Equity Commitment Agreement.
18. Administrative Claim: A Claim for costs and expenses of administration pursuant
to sections 503(b), 507(a)(2), 507(b), or 1114(e)(2) of the Bankruptcy Code, including: (a) the
actual and necessary costs and expenses incurred after the Petition Date of preserving the Estates
and operating the businesses of the Debtors; (b) Allowed Professional Claims; (c) the reasonable
2
fees and expenses of the Notes Trustee incurred in connection with the Chapter 11 Cases; and
(d) all fees and charges assessed against the Estates pursuant to section 1930 of chapter 123 of
title 28 of the United States Code.
19. Administrative Claim Bar Date: The deadline for filing requests for payment of
Administrative Claims, which shall be 30 days after the Effective Date, unless otherwise ordered by
the Bankruptcy Court, except with respect to Professional Claims, which shall be subject to the
provisions of ARTICLE II.B.
20. Affiliate: As defined in section 101(2) of the Bankruptcy Code and as pertains to
the Debtors or Reorganized Debtors, as applicable.
21. Allotted Portion: As defined in the Equity Commitment Agreement.
22. Allowed: Except as otherwise provided herein: (a) a Claim or Interest that is
(i) listed in the Schedules as of the Effective Date as not disputed, not contingent, and not
unliquidated, or (ii) evidenced by a valid Proof of Claim, filed by the applicable Bar Date and as
to which the Debtors or other parties in interest have not filed an objection to the allowance
thereof within the applicable period of time fixed by the Plan, the Bankruptcy Code, the Bankruptcy
Rules, or the Bankruptcy Court, or (b) a Claim that is Allowed pursuant to the Plan or any
stipulation approved by, or Final Order of, the Bankruptcy Court.
23. Allowed Senior Notes Claims: Collectively, the Allowed 7.00% Senior Notes Claims,
the Allowed 8.25% Senior Notes Claims, and the Allowed 12.25% Senior Notes Claims.
24. Avoidance Actions: Any and all avoidance, recovery, subordination, or other
actions or remedies that may be brought on behalf of the Debtors or their estates under the
Bankruptcy Code or applicable non-bankruptcy law, including actions or remedies under sections 544,
547, 548, 550, 551, 552, or 553 of the Bankruptcy Code.
25. Backstop Commitment: The obligation of the Investors severally and not jointly,
to purchase, or cause one or more of their affiliates to purchase, on the Effective Date, Rights
Offering Shares that are unsubscribed pursuant to ARTICLE V.F of the Plan in accordance with such
Investors backstop obligations as set forth in the Equity Commitment Agreement.
26. Bankruptcy Code: Title 11 of the United States Code, 11 U.S.C. §§ 101-1532, as
may be amended from time to time.
27. Bankruptcy Court: The United States Bankruptcy Court for the District of Delaware
having jurisdiction over the Chapter 11 Cases and, to the extent of the withdrawal of any reference
under section 157 of title 28 of the United States Code and/or order of a district court pursuant
to section 157(a) of title 28 of the United States Code, the United States District Court for the
District of Delaware.
28. Bankruptcy Rules: The Federal Rules of Bankruptcy Procedure as applicable to the
Chapter 11 Cases, and the general, local, and chambers rules of the Bankruptcy Court.
3
29. Bar Date: As applicable, (a) October 15, 2009, (b) the Government Bar Date, or
(c) such other period of limitation as may be specifically fixed by an order of the Bankruptcy
Court for filing Claims.
30. Board Selection Term Sheet: Under the Claims Conversion Sub Plan, that certain
term sheet filed with the Court on March 15, 2010 [Docket No. 2546] pursuant to which the New Board
shall be selected. Under the Rights Offering Sub Plan, that certain term sheet among Visteon
Corporation and the Requisite Investors, attached as Exhibit A to the Plan.
31. Business Day: Any day, other than a Saturday, Sunday, or a legal holiday, as
defined in Bankruptcy Rule 9006(a).
32. Cash: The legal tender of the United States of America or the equivalent thereof,
including bank deposits and checks.
33. Cash Amount: For each Non-Eligible Holder, the lesser of (a) its Cash Amount
Allocation of $50.0 million in Cash or (b) 40% of the amount of such holders Allowed Claim in
Cash.
34. Cash Amount Allocation: The proportion that a Non-Eligible Holders Allowed
Senior Notes Claim bears to the aggregate of Allowed Senior Notes Claims held by all Non-Eligible
Holders.
35. Cash Recovery Backstop Investor: Each Eligible Holder of an Allowed Senior Notes
Claim that is party to the Cash Recovery Backstop Agreement.
36. Cash Recovery Backstop Agreement: That certain cash recovery backstop agreement,
dated May 6, 2010, by and among Visteon Corporation and the investor parties thereto.
37. Cash Recovery Subscription Equity: The aggregate number of Rights Offering Shares
for which Non-Eligible Holders would have been entitled to subscribe pursuant to Subscription
Rights had such Non-Eligible Holders been Eligible Holders.
38. Causes of Action: Any and all Claims, actions, causes of action, choses in
action, suits, debts, damages, dues, sums of money, accounts, reckonings, bonds, bills,
specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses,
damages, judgments, remedies, rights of set-off, third-party claims, subrogation claims,
contribution claims, reimbursement claims, indemnity claims, counterclaims, and crossclaims
(including all claims and any avoidance, recovery, subordination, or other actions against Insiders
and/or any other Entities under the Bankruptcy Code, including Avoidance Actions) of any of the
Debtors, the debtors in possession, and/or the Estates (including those actions set forth in the
Plan Supplement), whether known or unknown, liquidated or unliquidated, fixed or contingent,
matured or unmatured, disputed or undisputed, that are or may be pending on the Effective Date or
instituted by the Reorganized Debtors after the Effective Date against any Entity, based in law or
equity, including under the Bankruptcy Code, whether direct, indirect, derivative, or otherwise and
whether asserted or unasserted as of the date of entry of the Confirmation Order.
4
39. Certificate: Any instrument evidencing a Claim or an Interest.
40. Chapter 11 Cases: The jointly administered chapter 11 cases commenced by the
Debtors, with case numbers 09-11786 through 09-11816, and styled In re Visteon Corporation, et al.,
Case No. 09-11786 (CSS), which are currently pending before the Bankruptcy Court.
41. Claim: As defined in section 101(5) of the Bankruptcy Code.
42. Claims and Solicitation Agent: Kurtzman Carson Consultants LLC, located at 2335
Alaska Avenue, El Segundo, California 90245, (888) 249-2792, retained as the Debtors claims and
solicitation agent by order dated May 29, 2009, entitled Order Authorizing Employment and Retention
of Kurtzman Carson Consultants LLC as Notice, Claims, and Solicitation Agent for Debtors [Docket
No. 79].
43. Claims Conversion Sub Plan: The Plan if the Debtors do not obtain Consummation of
the Rights Offering Sub Plan. For the avoidance of doubt, the Claims Conversion Sub Plan shall be
premised on the valuation of the Debtors as set forth in the Debtors Second Amended Disclosure
Statement for the Second Amended Joint Plan of Reorganization of Visteon Corporation and Its Debtor
Affiliates Pursuant to Chapter 11 of the United States Bankruptcy Code attached to the Equity
Commitment Agreement.
44. Claims Register: The official register of Claims and Interests maintained by the
Claims and Solicitation Agent.
45. Class: A category of holders of Claims or Interests pursuant to section 1122(a)
of the Bankruptcy Code.
46. Co-Investor: As defined in the Equity Commitment Agreement.
47. Confirmation: The entry of the Confirmation Order on the docket of the Chapter 11
Cases, subject to all conditions specified having been satisfied or waived.
48. Confirmation Date: The date upon which the Bankruptcy Court enters the
Confirmation Order on the docket of the Chapter 11 Cases, within the meaning of Bankruptcy Rules
5003 and 9021.
49. Confirmation Hearing: The hearing before the Bankruptcy Court pursuant to section
1128 of the Bankruptcy Code on the motion for entry of the Confirmation Order.
50. Confirmation Order: The order of the Bankruptcy Court confirming the Plan
pursuant to section 1129 of the Bankruptcy Code.
51. Connersville / Bedford Pension Plan: That certain Pension Plan of Visteon
Systems, LLC Connersville and Bedford Plants, as amended through December 22, 2009.
52. Consenting Note Holders: Those certain holders of Allowed Senior Notes Claims
that are party to the Plan Support Agreement.
5
53. Consummation: The occurrence of the Effective Date.
54. Contingent Holder: A holder of an Allowed Claim that, in connection with the
issuance and distribution to such holder of shares of New Visteon Common Stock pursuant to the
Plan, provides to the Distribution Agent written notice at least ten days prior to the Effective
Date that receipt of such shares may cause such holder to be in violation of the laws or
regulations of any applicable Governmental Unit. A Contingent Holder shall not be entitled to
receive shares of New Visteon Common Stock unless and until such laws or regulations are complied
with including that such holder makes or obtains all necessary governmental and/or third party
notifications, filings, consents, waivers, authorizations or approvals, as applicable.
55. Counsel to the Ad Hoc Group of Noteholders: As defined in the Equity Commitment
Agreement.
56. Creditor: As defined in section 101(10) of the Bankruptcy Code.
57. Creditors Committee: The official committee of unsecured creditors appointed
pursuant to section 1102 of the Bankruptcy Code by the United States Trustee for the District of
Delaware on June 8, 2009, as it may be reconstituted from time to time.
58. Cure: A Claim for all unpaid monetary obligations, or such lesser amount as may
be agreed upon by the parties, under an Executory Contract or Unexpired Lease assumed by the
Debtors pursuant to section 365 of the Bankruptcy Code or the Plan.
59. Cure Bar Date: The deadline for filing Proofs of Claims on account of a Cure,
which shall be the earlier of: (a) 30 days after the Effective Date or (b) 30 days after the
assumption of the applicable Executory Contract or Unexpired Lease, unless otherwise ordered by the
Bankruptcy Court or agreed to by the Debtors and the counterparty to the applicable Executory
Contract or Unexpired Lease.
60. Currency Contracts: Derivative contracts and foreign currency spot trades entered
into by a Debtor in the ordinary course of business, as more fully set forth in that certain motion
filed with the Bankruptcy Court on October 28, 2009 [Docket No. 1203].
61. Debtors: Each of the following Entities, collectively: Visteon Corporation; ARS,
Inc.; Fairlane Holdings, Inc.; GCM/Visteon Automotive Leasing Systems, LLC; GCM/Visteon Automotive
Systems, LLC; Infinitive Speech Systems Corp.; MIG-Visteon Automotive Systems, LLC; SunGlas, LLC;
The Visteon Fund; Tyler Road Investments, LLC; VC Aviation Services, LLC; VC Regional Assembly &
Manufacturing, LLC; Visteon AC Holdings Corp.; Visteon Asia Holdings, Inc.; Visteon Automotive
Holdings, LLC; Visteon Caribbean, Inc.; Visteon Climate Control Systems Limited; Visteon Domestic
Holdings, LLC; Visteon Electronics Corporation; Visteon European Holdings Corporation; Visteon
Financial Corporation; Visteon Global Technologies, Inc.; Visteon Global Treasury, Inc.; Visteon
Holdings, LLC; Visteon International Business Development, Inc.; Visteon International Holdings,
Inc.; Visteon LA Holdings Corp.; Visteon Remanufacturing Incorporated; Visteon Systems, LLC; and
Visteon Technologies, LLC.
62. DIP Facility: The debtor in possession financing facility set forth in the DIP
Facility Credit Agreement providing for a $75 million immediate draw and an option to draw an
6
additional $75 million, subject to certain conditions, and approved by Final Order (A)
Approving Senior Secured Superpriority Priming Postpetition Financing; (B) Granting Liens and
Providing Superpriority Administrative Expense Status; (C) Granting Adequate Protection to
Prepetition Secured Parties; (D) Authorizing the Use of Cash Collateral; and (E) Modifying the
Automatic Stay, entered on November 12, 2009 [Docket No. 1311].
63. DIP Facility Administrative Agent: Wilmington Trust FSB, or its successor, in its
capacity as administrative agent under the DIP Facility.
64. DIP Facility Claims: Any Claim derived from or based upon the DIP Facility.
65. DIP Facility Credit Agreement: That certain Senior Secured Super Priority Priming
Debtor in Possession Credit and Guaranty Agreement, dated November 18, 2009, as amended,
supplemented, or modified from time to time, between Visteon Corporation and each subsidiary of
Visteon Corporation party thereto, as borrowers, the lenders party thereto, and the DIP Facility
Administrative Agent.
66. DIP Facility Lenders: The lenders under the DIP Facility.
67. Direct Commitment: The obligation of the Investors, severally and not jointly, to
subscribe for and purchase, or cause one or more of their affiliates to subscribe for and purchase,
Rights Offering Shares in an amount equal to $300.0 million on the terms and subject to the
conditions of the Equity Commitment Agreement.
68. Disclosure Statement: The disclosure statement for the Plan, supplemented or
modified from time to time, including all exhibits and schedules thereto, and as approved by the
Bankruptcy Court pursuant to section 1125 of the Bankruptcy Code.
69. Disputed Claim: Any Claim or Interest that is not yet Allowed.
70. Distributable Commitment Percentage: As defined in the Cash Recovery Backstop
Agreement.
71. Distributable Equity: Those shares of New Visteon Common Stock issued and
outstanding as of the Effective Date, including, if applicable, Rights Offering Shares, subject to
dilution by the Management Equity Incentive Program and, if applicable, the Guaranty Equity Amount.
72. Distribution Agent: The Reorganized Debtors or the Entity or Entities selected by
the Reorganized Debtors, as applicable, to make or to facilitate distributions pursuant to the
Plan.
73. Distribution Date: The date occurring as soon as the Debtors or the Reorganized
Debtors determine in their sole discretion to be reasonable and practicable after the Effective
Date, upon which the Distribution Agent shall begin making distributions to holders of Allowed
Claims entitled to receive distributions under the Plan.
74. Distribution Record Date: The date for determining which holders of Allowed
Claims, except holders of publicly traded Certificates, are eligible to receive distributions
7
hereunder, which shall be (a) ten Business Days after entry of the Confirmation Order or (b)
such other date as designated in a Bankruptcy Court order.
75. Effective Date: The date that is the first Business Day after the Confirmation
Date on which: (a) no stay of the Confirmation Order is in effect; and (b) all conditions
precedent to the Effective Date have been satisfied or waived.
76. Election Form: The form entitled Indication of Accredited Investor Status
pursuant to which a holder of an Allowed Senior Notes Claim certifies whether it is or is not an
Accredited Investor.
77. Election Form Deadline: That date which shall be the final date by which a holder
may submit its Election Form certifying whether it is or is not an Accredited Investor, as set
forth in the Rights Offering Procedures.
78. Eligible Holder: A holder of an Allowed Senior Notes Claim that, in accordance
with the terms set forth in the Election Form and the Rights Offering Procedures, has submitted a
completed Election Form certifying that such holder is an Accredited Investor.
79. Entity: As defined in section 101(15) of the Bankruptcy Code.
80. Equity Commitment Agreement: That certain equity commitment agreement, dated May
6, 2010, by and among Visteon Corporation and the investor parties thereto.
81. Equity Security: As defined in section 101(16) of the Bankruptcy Code.
82. Estate: The bankruptcy estate of any Debtor created pursuant to sections 301 and
541 of the Bankruptcy Code upon the commencement of the Chapter 11 Cases.
83. Exculpated Claim: Any Claim related to any act or omission in connection with,
relating to, or arising out of the Debtors in or out of court restructuring, the Chapter 11 Cases,
formulation, preparation, dissemination, negotiation, or filing of the Disclosure Statement or Plan
or any contract, instrument, release, or other agreement or document created or entered into in
connection with the Disclosure Statement, the Plan, the Equity Commitment Agreement, the filing of
the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration
and implementation of the Plan, or the distribution of property under the Plan or any other
agreement.
84. Exculpated Party: Each of the following in its capacity as such: (a) the Debtors
and their Affiliates, (b) the Reorganized Debtors and their Affiliates, (c) the DIP Facility
Lenders and the DIP Facility Administrative Agent, (d) the Investors, (e) the ABL Facility
Administrative Agent, solely to the extent that such party votes to accept the Plan if entitled to
vote, and the ABL Lender, solely to the extent that such party votes to accept the Plan if entitled
to vote and matters relating to Ford Motor Company have been resolved to the reasonable
satisfaction of the Requisite Parties, (f) the Term Loan Lenders and the Term Loan Facility
Administrative Agent, (g) the Ad Hoc Group of Noteholders, (h) any holder of Senior Notes, solely
to the extent that such holder votes to accept the Plan, and (i) with respect to each of the
foregoing Entities in clauses (a) through (h), such Entities successors and assigns, (j) the
Creditors Committee and
8
the members thereof, (k) with respect to each of the foregoing Entities in clauses (a) through
(j), such Entities subsidiaries, affiliates, officers, directors, principals, partners, members,
employees, agents, financial advisors, attorneys, accountants, investment bankers, consultants,
representatives, and other Professionals, in their capacities as such.
85. Executory Contract: A contract or lease to which one or more of the Debtors is a
party that is subject to assumption or rejection under sections 365 or 1123 of the Bankruptcy Code.
86. Exit Financing: As defined in the Equity Commitment Agreement.
87. Final Decree: The decree contemplated under Bankruptcy Rule 3022.
88. Final Order: An order or judgment of the Bankruptcy Court, or other court of
competent jurisdiction with respect to the subject matter, which has not been reversed, stayed,
modified, or amended, and as to which the time to appeal or seek certiorari has expired and no
appeal or petition for certiorari has been timely taken, or as to which any appeal that has been
taken or any petition for certiorari that has been or may be filed has been resolved by the highest
court to which the order or judgment was appealed or from which certiorari was sought;
provided, however, that the possibility that a motion under Rule 60 of the Federal
Rules of Civil Procedure, or any analogous rule under the Bankruptcy Rules or the Local Bankruptcy
Rules, may be filed relating to such order shall not prevent such order from being a Final Order;
provided, further, that the Debtors or Reorganized Debtors, as applicable, reserve
the right to waive any appeal period.
89. General Unsecured Claim: Any Claim, other than Administrative Claims,
Professional Claims, DIP Facility Claims, Priority Tax Claims, ABL Claims, Secured Tax Claims,
Other Secured Claims, Other Priority Claims, Term Loan Facility Claims, 7.00% Senior Notes Claims,
8.25% Senior Notes Claims, 12.25% Senior Notes Claims, Intercompany Claims, and Section 510(b)
Claims.
90. Government Bar Date: November 24, 2009.
91. Governmental Unit: As defined in section 101(27) of the Bankruptcy Code.
92. Guaranty Equity Amount: Under the Rights Offering Sub Plan, warrants with the
terms set forth in the Warrant Agreement attached as Exhibit B to the Plan.
93. Impaired: With respect to any Class of Claims or Interests, a Claim or Interest
that is not Unimpaired.
94. Incentive Program: That certain incentive program established by Visteon
Corporation pursuant to the 2004 Incentive Plan effective May 12, 2004, comprised of an annual
incentive program and a long term incentive program, as amended by the Employee Benefit and
Incentive Programs Term Sheet attached as Exhibit L to the Equity Commitment Agreement.
95. Indemnification Obligation: A Debtors obligation under an Executory Contract, a
corporate or other document, a postpetition agreement, through the Plan, or otherwise to
9
indemnify directors, officers, or employees of the Debtors who served in such capacity at any
time, with respect to or based upon any act or omission taken or omitted in any of such capacities,
or for or on behalf of any Debtor, pursuant to and to the maximum extent provided by the Debtors
respective articles of incorporation, certificates of formation, bylaws, similar corporate
documents, and applicable law, as in effect as of the Effective Date.
96. Insider: As defined in section 101(31) of the Bankruptcy Code.
97. Intercompany Claim: A Claim by a Debtor against another Debtor or a Claim by an
Affiliate of the Debtors against a Debtor.
98. Intercompany Contract: A contract between two or more Debtors or a contract
between one or more Affiliates and one or more Debtors.
99. Intercompany Interest: An Interest held by a Debtor or an Affiliate.
100. Interest: Any Equity Security of a Debtor existing immediately prior to the
Effective Date.
101. Interim Compensation Order: The Order Establishing Procedures for Interim
Compensation and Reimbursement of Expenses of Professionals, entered by the Bankruptcy Court on
June 19, 2009 [Docket No. 360].
102. Investors: Those certain holders of the Allowed Senior Notes Claims that are
party to the Equity Commitment Agreement.
103. Lead Investors: Those certain Investors set forth on Schedule 5 of the Equity
Commitment Agreement.
104. Lien: As defined in section 101(37) of the Bankruptcy Code.
105. Management Equity Incentive Program: A post-Effective Date compensation program
in accordance with the terms set forth in the Management Equity Incentive Program Term Sheet.
106. Management Equity Incentive Program Term Sheet: Under the Claims Conversion Sub
Plan, the Claims Conversion Sub Plan Management Equity Incentive Program Term Sheet contained in
the Plan Supplement. Under the Rights Offering Sub Plan, the Rights Offering Sub Plan Management
Equity Incentive Program Term Sheet attached as Exhibit G to the Equity Commitment Agreement.
107. New Board: The initial board of directors of Reorganized Visteon, which shall as
of the Effective Date consist of members selected in accordance with the Board Selection Term
Sheet.
108. New Visteon Common Stock: The authorized shares of common stock of Reorganized
Visteon, par value $0.01 per share.
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109. Non-Eligible Holder: A holder of an Allowed Senior Notes Claim that is not an
Eligible Holder.
110. Notes Indentures: Collectively, the 7.00% Senior Notes Indenture, 8.25% Senior
Notes Indenture, and 12.25% Senior Notes Indenture.
111. Notes Trustee: Law Debenture Trust Company of New York, or its successor, in its
capacity as successor trustee under the 7.00% Senior Notes Indenture, the 8.25% Senior Notes
Indenture, and the 12.25% Senior Notes Indenture.
112. Oasis Trust: Oasis Holdings Statutory Trust, a Connecticut statutory trust and
an Affiliate.
113. OPEB: Other post-employment benefits obligations.
114. Other Priority Claim: Any Claim other than an Administrative Claim or a Priority
Tax Claim entitled to priority in right of payment under section 507(a) of the Bankruptcy Code.
115. Other Secured Claim: Any Secured Claim other than (a) a DIP Facility Claim, (b)
an ABL Claim, (c) a Term Loan Facility Claim, or (d) a Secured Tax Claim.
116. Oversight Committee: A post-Effective Date committee consisting of no more than
three members of the Creditors Committee to be selected by the Creditors Committee upon
consultation with the Debtors and existing solely for the purpose described in ARTICLE XIII.H of
the Plan.
117. Oversubscription Rights: The rights granted to Eligible Holders that validly
exercise their Subscription Rights in full to purchase Rights Offering Shares not otherwise
subscribed for pursuant to Eligible Holders validly exercised Subscription Rights.
118. PBGC: The Pension Benefit Guaranty Corporation, a wholly-owned United States
government corporation, created by the Employee Retirement Income Security Act of 1974
(ERISA), to administer the mandatory pension plan termination insurance program
established under Title IV of ERISA.
119. Pension Plans: Collectively, the Visteon Pension Plan, the Connersville /
Bedford Pension Plan, the UAW Pension Account Plan, and the Visteon Caribbean Pension Plan, which
are the Debtors defined benefit pension plans subject to Title IV of ERISA.
120. Periodic Distribution Date: The Distribution Date, as to the first distribution
made by the Distribution Agent, and thereafter, such Business Days as determined in the sole
discretion of the Distribution Agent.
121. Person: As defined in section 101(41) of the Bankruptcy Code.
122. Petition Date: May 28, 2009.
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123. Plan: The Debtors joint chapter 11 plan of reorganization as it may be altered,
amended, modified, or supplemented from time to time in accordance with the terms set forth herein,
including the Plan Supplement and all exhibits, supplements, appendices, and schedules.
124. Plan Supplement: The supplement or supplements to the Plan containing certain
documents relevant to the implementation of the Plan, to be filed with the Bankruptcy Court, as it
may be amended prior to the Effective Date, which shall be in form and substance reasonably
acceptable to the Requisite Parties.
125. Plan Support Agreement: That certain plan support agreement among the Debtors
and the Consenting Note Holders, attached as Exhibit H to the Equity Commitment Agreement.
126. Priority Claim: Collectively, Priority Tax Claims and Other Priority Claims.
127. Priority Tax Claim: Any Claim of a Governmental Unit of the kind specified in
section 507(a)(8) of the Bankruptcy Code.
128. Professional: An Entity: (a) employed in the Chapter 11 Cases pursuant to a
Final Order in accordance with sections 327 and 1103 of the Bankruptcy Code and to be compensated
for services rendered prior to or on the Effective Date, pursuant to sections 327, 328, 329, 330,
and 331 of the Bankruptcy Code or (b) for which compensation and reimbursement has been Allowed by
the Bankruptcy Court pursuant to section 503(b)(4) of the Bankruptcy Code.
129. Professional Claims: A Claim by a Professional seeking an award by the
Bankruptcy Court of compensation for services rendered or reimbursement of expenses incurred
through and including the Confirmation Date under sections 330, 331, 503(b)(2), 503(b)(3),
503(b)(4) or 503(b)(5) of the Bankruptcy Code.
130. Professional Compensation: All accrued fees and expenses (including success
fees) for services rendered by all Professionals through and including the Confirmation Date to the
extent any such fees and expenses have not been paid and regardless of whether a fee application
has been filed for such fees and expenses. To the extent there is a Final Order denying some or
all of a Professionals fees or expenses, such denied amounts shall no longer be considered
Professional Compensation.
131. Professional Fee Escrow Account: An interest-bearing account in an amount equal
to the Professional Fee Reserve Amount and funded by the Debtors on the Confirmation Date.
132. Professional Fee Reserve Amount: Professional Compensation through the
Confirmation Date as estimated in accordance with ARTICLE II.B.3 herein.
133. Proof of Claim: A proof of Claim filed against any of the Debtors in the Chapter
11 Cases.
134. Pro Rata: The proportion that an Allowed Claim in a particular Class bears to
the aggregate amount of Allowed Claims in that Class.
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135. Pro Rata Allocation: In connection with the Rights Offering, the proportion that
an Eligible Holders Allowed Senior Notes Claim bears to the aggregate of Allowed Senior Notes
Claims. Otherwise, the proportion that a holders Allowed Senior Notes Claim bears to the
aggregate of Allowed Senior Notes Claims.
136. Purchase Notice: As defined in the Equity Commitment Agreement.
137. Purchase Price: $27.69 per share.
138. Related Purchaser: As defined in the Equity Commitment Agreement.
139. Released Party: Each of the following in its capacity as such, and only in its
capacity as such: (a) the Debtors and the Reorganized Debtors current and former affiliates,
subsidiaries, officers, directors, principals, partners, members, employees, agents, financial
advisors, attorneys, accountants, investment bankers, consultants, representatives, and other
Professionals, (b) the DIP Facility Lenders and the DIP Facility Administrative Agent, (c) the
Investors, (d) the ABL Facility Administrative Agent, solely to the extent that such party votes to
accept the Plan if entitled to vote, and the ABL Lender, solely to the extent that such party votes
to accept the Plan if entitled to vote and matters relating to Ford Motor Company have been
resolved to the reasonable satisfaction of the Requisite Parties, (e) the Term Loan Lenders and the
Term Loan Facility Administrative Agent, (f) any holder of Senior Notes, solely to the extent that
such holder votes to accept the Plan, (g) the Creditors Committee and the members thereof, and (h)
with respect to each of the foregoing Entities in clauses (b) through (g), their respective current
and former affiliates, subsidiaries, officers, directors, principals, employees, agents, financial
advisors, attorneys, accountants, investment bankers, consultants, representatives, and other
Professionals, in their capacities as such.
140. Releasing Party: Each of the following in its capacity as such: (a) the DIP
Facility Lenders and the DIP Facility Administrative Agent, (b) the ABL Lender and ABL Facility
Administrative Agent, (c) the Term Loan Lenders and the Term Loan Facility Administrative Agent,
(d) the Creditors Committee and the members thereof, (e) the Investors, (f) each holder of a Claim
voting to accept the Plan, and (g) each holder of a Claim abstaining from voting to accept or
reject the Plan, unless such abstaining holder checks the box on the applicable ballot,
upon which holders of Impaired Claims entitled to vote shall cast their vote to accept or reject
the Plan, indicating that such holder opts not to grant the releases provided in the Plan.
141. Reorganized Debtors: The Debtors, in each case, or any successor thereto, by
merger, consolidation, or otherwise, on or after the Effective Date.
142. Reorganized Visteon: Visteon Corporation or any successor thereto, by merger,
consolidation, or otherwise, on or after the Effective Date.
143. Reorganized Visteon Bylaws: The bylaws of Reorganized Visteon substantially in
the form contained in the Plan Supplement under the Claims Conversion Sub Plan or attached as
Exhibit D to the Equity Commitment Agreement under the Rights Offering Sub Plan.
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144. Reorganized Visteon Charter: The amended and restated certificate of
incorporation of Reorganized Visteon substantially in the form contained in the Plan Supplement
under the Claims Conversion Sub Plan or attached as Exhibit E to the Equity Commitment Agreement
under the Rights Offering Sub Plan.
145. Requisite Investors: As defined in the Equity Commitment Agreement.
146. Requisite Parties: The Requisite Investors under the Rights Offering Sub Plan.
The Requisite Term Loan Holders under the Claims Conversion Sub Plan.
147. Requisite Term Loan Holders: The Term Loan Lenders holding a majority in
principal amount of the Allowed Term Loan Facility Claims.
148. Restructuring Transactions: Those certain transactions described in ARTICLE IV.T
of the Plan.
149. Rights Offering: That certain rights offering by Visteon Corporation pursuant to
which Eligible Holders shall have the right to exercise Subscription Rights and Oversubscription
Rights and the Investors shall have obligations to consummate the Direct Commitment and the
Backstop Commitment to purchase Rights Offering Shares for an amount in aggregate equal to $1,250.0
million.
150. Rights Offering Agent: Financial Balloting Group, LLC.
151. Rights Offering Procedures: The procedures required to be followed by the
Eligible Holders to validly exercise their Subscription Rights and Oversubscription Rights,
attached as Exhibit J to the Equity Commitment Agreement, the terms of which shall be approved by
the Rights Offering Procedures Order.
152. Rights Offering Procedures Order: That certain Final Order approving certain
procedures for the exercise of Subscription Rights and Oversubscription Rights.
153. Rights Offering Shares: Any shares of New Visteon Common Stock that are the
subject of the Rights Offering, subject to dilution by the Management Equity Incentive Program and
the Guaranty Equity Amount.
154. Rights Offering Sub Plan: The Plan if both of the Rights Offering and the Exit
Financing are consummated, in accordance with the terms of the Plan and the Equity Commitment
Agreement. The Rights Offering Sub Plan shall be premised on the valuation of the Debtors as set
forth in the Debtors Second Amended Disclosure Statement for the Second Amended Joint Plan of
Reorganization of Visteon Corporation and Its Debtor Affiliates Pursuant to Chapter 11 of the
United States Bankruptcy Code attached to the Equity Commitment Agreement.
155. Schedules: The schedules of assets and liabilities, schedules of Executory
Contracts and Unexpired Leases, and statements of financial affairs filed by the Debtors pursuant
to section 521 of the Bankruptcy Code and the Bankruptcy Rules.
14
156. Section 510(b) Claim: Any Claim against the Debtors arising from rescission of a
purchase or sale of a security of the Debtors or an Affiliate of the Debtors, for damages arising
from the purchase or sale of such a security, or for reimbursement or contribution allowed under
section 502 of the Bankruptcy Code on account of such a Claim.
157. Secured Claim: A Claim: (a) secured by a Lien on collateral to the extent of the
value of such collateral, as determined in accordance with section 506(a) of the Bankruptcy Code or
(b) subject to a valid right of setoff pursuant to section 553 of the Bankruptcy Code
158. Secured Tax Claim: Any Secured Claim that, absent its secured status, would be
entitled to priority in right of payment under section 507(a)(8) of the Bankruptcy Code (determined
irrespective of time limitations), including any related Secured Claim for penalties.
159. Securities Act: The Securities Act of 1933, as amended, and the rules and
regulations of the Securities and Exchange Commission promulgated thereunder.
160. Security: As defined in section 2(a)(1) of the Securities Act.
161. Senior Notes: Collectively, the 7.00% Senior Notes, 8.25% Senior Notes, and
12.25% Senior Notes.
162. Servicer: An indenture trustee, agent, servicer, or other authorized
representative of holders of Claims or Interests recognized by the Debtors.
163. Solicitation Procedures Order: That certain Final Order approving certain
procedures for solicitation of votes on the Plan.
164. Subscription Expiration Date: That date which shall be the final date by which
an Eligible Holder may exercise Subscription Rights and, if applicable, Oversubscription Rights,
which date is set forth in the Rights Offering Procedures Order.
165. Subscription Form: The form that an Eligible Holder must complete and return to
the Rights Offering Agent in order to exercise Subscription Rights and Oversubscription Rights in
accordance with the terms of ARTICLE V.F of the Plan.
166. Subscription Rights: The rights granted to Eligible Holders to purchase the
Rights Offering Shares.
167. Term Loan Agreement: That certain Amended and Restated Credit Agreement, dated
April 10, 2007, between Visteon Corporation, as borrower, JPMorgan Chase Bank, N.A., as
administrative agent, Wilmington Trust FSB, as successor administrative agent, Citicorp USA, Inc.,
as syndication agent, Credit Suisse Securities (USA) LLC and Sumitomo Mitsui Banking Corporation,
as co-documentation agents, and the several banks, financial institutions, and other entities party
thereto, as lenders, as amended, supplemented, or modified from time to time.
168. Term Loan Facility: The $1.5 billion facility provided under (a) the Term Loan
Agreement and any ancillary agreements related thereto, and (b) all related security agreements,
15
mortgages, pledge agreements, guaranties, other collateral agreements, Certificates, financing
statements and related assignments and transfer powers and additional documents and ancillary
agreements, as amended.
169. Term Loan Facility Administrative Agent: Wilmington Trust FSB, or its successor,
in its capacity as successor administrative agent under the Term Loan Facility.
170. Term Loan Facility Claims: The Claims, including all accrued but unpaid
interest, fees, costs, and expenses due and owing with respect thereto, derived from or based upon
the Term Loan Facility.
171. Term Loan Lender: A holder of a Term Loan Facility Claim.
172. Trade Claim: Any Claim arising prior to the Petition Date that directly relates
to and arises solely from the receipt of goods or services by the Debtors, excluding for the
avoidance of doubt Administrative Claims.
173. UAW Pension Account Plan: That certain UAW Visteon Pension Account Plan, as
amended through January 8, 2010.
174. Unclaimed Distribution: Any distribution under the Plan on account of an Allowed
Claim to a holder that has not: (a) accepted a particular distribution or, in the case of
distributions made by check, negotiated such check; (b) given notice to the Reorganized Debtors of
an intent to accept a particular distribution; (c) responded to the Debtors or Reorganized
Debtors requests for information necessary to facilitate a particular distribution; or (d) taken
any other action necessary to facilitate such distribution.
175. Unexpired Lease: A lease of nonresidential real property to which one or more of
the Debtors is a party that is subject to assumption or rejection under section 365 of the
Bankruptcy Code.
176. Unimpaired: With respect to a Class of Claims or Interests, a Class of Claims or
Interests that is unimpaired within the meaning of section 1124 of the Bankruptcy Code.
177. U.S. Bank L/C Facility Documents: That certain Letter of Credit Reimbursement
and Security Agreement, dated November 16, 2009, between Visteon Corporation and U.S. Bank National
Association, as amended from time to time, and any related documents and instruments as may be
delivered or executed in connection therewith.
178. VIHI Restructuring: The reorganizations and other transactions involving certain
subsidiaries of Visteon Corporation that may be undertaken on or prior to the Effective Date as set
forth in Exhibit K attached to the Equity Commitment Agreement.
179. Visteon Caribbean Pension Plan: That certain Pension Plan of Visteon Caribbean,
Inc., as amended through July 8, 2009.
180. Visteon Pension Plan: That certain Visteon Pension Plan, as amended through
December 22, 2009.
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181. Voting Deadline: That date which shall be the final date by which a holder of a
Claim may vote to accept or reject the Plan, which date is set forth in the Solicitation Procedures
Order.
182. Voting Record Date: That date for determining which holders of Claims are
entitled to vote to accept or reject the Plan, which date is set forth in the Solicitation
Procedures Order.
B. Rules of Interpretation
1. For purposes of the Plan: (a) in the appropriate context, each term, whether stated in the
singular or the plural, shall include both the singular and the plural, and pronouns stated in the
masculine, feminine, or neuter gender shall include the masculine, feminine, and the neuter gender;
(b) unless otherwise specified, any reference herein to a contract, lease, instrument, release,
indenture, or other agreement or document being in a particular form or on particular terms and
conditions means that such document shall be substantially in such form or substantially on such
terms and conditions; (c) unless otherwise specified, any reference herein to an existing document,
schedule, or exhibit, shall mean such document, schedule, or exhibit, as it may have been or may be
amended, modified, or supplemented; (d) unless otherwise specified, all references herein to
Articles are references to Articles hereof or hereto; (e) the words herein, hereof, and
hereto refer to the Plan in its entirety rather than to any particular portion of the Plan; (f)
captions and headings to Articles are inserted for convenience of reference only and are not
intended to be a part of or to affect the interpretation of the Plan; (g) unless otherwise
specified herein, the rules of construction set forth in section 102 of the Bankruptcy Code shall
apply; and (h) any term used in capitalized form herein that is not otherwise defined but that is
used in the Bankruptcy Code or the Bankruptcy Rules shall have the meaning assigned to such term in
the Bankruptcy Code or the Bankruptcy Rules, as applicable.
2. The provisions of Bankruptcy Rule 9006(a) shall apply in computing any period of time
prescribed or allowed herein.
3. Except to the extent the Bankruptcy Code or Bankruptcy Rules apply, and subject to the
provisions of any contract, lease, instrument, release, indenture, or other agreement or document
entered into expressly in connection herewith, the rights and obligations arising hereunder shall
be governed by, and construed and enforced in accordance with, the laws of the State of New York,
without giving effect to the principles of conflict of laws thereof.
4. Unless specified as pertaining to the Rights Offering Sub Plan or the Claims Conversion Sub
Plan, the provisions of the Plan shall apply whether the Debtors proceed with Confirmation and
Consummation of the Rights Offering Sub Plan or the Claims Conversion Sub Plan.
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ARTICLE II.
ADMINISTRATIVE AND PRIORITY CLAIMS
ADMINISTRATIVE AND PRIORITY CLAIMS
In accordance with section 1123(a)(1) of the Bankruptcy Code, Administrative Claims,
Professional Claims, DIP Facility Claims, and Priority Tax Claims have not been classified and thus
are excluded from the Classes of Claims set forth in ARTICLE III.
A. Administrative Claims
Unless otherwise agreed to by the holder of an Allowed Administrative Claim and the Debtors or
Reorganized Debtors, as applicable, each holder of an Allowed Administrative Claim (other than of a
Professional Claim), including any Allowed Administrative Claim of the Notes Trustee, will receive
in full and final satisfaction of its Administrative Claim an amount of Cash equal to the amount of
such Allowed Administrative Claim either: (1) on the Effective Date, or as soon as practicable
thereafter, (2) if the Administrative Claim is not Allowed as of the Effective Date, no later than
30 days after the date on which an order Allowing such Administrative Claim becomes a Final Order,
or as soon as reasonably practicable thereafter, or (3) if the Allowed Administrative Claim is
based on liabilities incurred by the Debtors in the ordinary course of their business after the
Petition Date (including any reasonable fees and expenses as provided for in the Equity Commitment
Agreement), pursuant to the terms and conditions of the particular transaction giving rise to such
Allowed Administrative Claims, without any further action by the holders of such Allowed
Administrative Claims. For the avoidance of doubt, all reasonable fees and expenses of the Notes
Trustee (and its counsel, agents, and advisors) that are provided for under the Notes Indentures
shall be paid in full in Cash on the Effective Date, or as soon as practicable thereafter, without
a reduction to the recoveries of applicable holders of Allowed Claims.
B. Professional Claims
1. Final Fee Applications. All final requests for payment of Claims of a Professional
shall be filed no later than 60 days after the Confirmation Date. After notice and a hearing in
accordance with the procedures established by the Bankruptcy Code and prior Bankruptcy Court
orders, the Allowed amounts of such Professional Claims shall be determined by the Bankruptcy
Court.
2. Professional Fee Escrow Account. In accordance with ARTICLE II.B.3 hereof, on the
Confirmation Date, the Debtors shall establish and fund the Professional Fee Escrow Account with
Cash equal to the aggregate Professional Fee Reserve Amount for all Professionals. The
Professional Fee Escrow Account shall be maintained in trust for the Professionals. Such funds
shall not be considered property of the estates of the Debtors or Reorganized Debtors, as
applicable. The amount of Professional Claims owing to the Professionals shall be paid in Cash to
such Professionals by the Reorganized Debtors from the Professional Fee Escrow Account when such
Claims are Allowed by a Final Order. When all Professional Claims have been paid in full, amounts
remaining in the Professional Fee Escrow Account, if any, shall revert to the Reorganized Debtors.
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3. Professional Fee Reserve Amount. To receive payment for unbilled fees and expenses
incurred through the Confirmation Date, the Professionals shall estimate their Professional
Compensation prior to and as of the Confirmation Date and shall deliver such estimate to the
Debtors no later than 10 days prior to the Confirmation Date, provided, however,
that such estimate shall not be considered an admission with respect to the fees and expenses of
such Professional. If a Professional does not provide an estimate, the Reorganized Debtors may
estimate the unbilled fees and expenses of such Professional. The total amount so estimated as of
the Confirmation Date shall comprise the Professional Fee Reserve Amount.
4. Post-Confirmation Date Fees and Expenses. Except as otherwise specifically
provided in the Plan, from and after the Confirmation Date, the Debtors or Reorganized Debtors, as
applicable, shall, in the ordinary course of business and without any further notice to or action,
order, or approval of the Bankruptcy Court, pay in Cash the reasonable legal, professional, or
other fees and expenses related to implementation and Consummation incurred by the Debtors or
Reorganized Debtors, as applicable. Upon the Confirmation Date, any requirement that Professionals
comply with sections 327 through 331 and 1103 of the Bankruptcy Code or the Interim Compensation
Order in seeking retention or compensation for services rendered after such date shall terminate,
and the Reorganized Debtors may employ and pay any Professional in the ordinary course of business
without any further notice to or action, order, or approval of the Bankruptcy Court.
C. DIP Facility Claims
Except to the extent that a holder of an Allowed DIP Facility Claim agrees to a less favorable
treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange
for each and every Allowed DIP Facility Claim, each such Allowed Claim shall be paid in full in
Cash on the Effective Date, or as soon as practicable thereafter, provided such payments shall be
distributed to the DIP Facility Administrative Agent on behalf of holders of such Allowed Claims.
D. Priority Tax Claims
Each holder of an Allowed Priority Tax Claim due and payable on or before the Effective Date
shall receive one of the following treatments on account of such Claim (1) Cash in an amount equal
to the amount of such Allowed Priority Tax Claim, (2) Cash in an amount agreed to by the Debtor or
Reorganized Debtor, as applicable, and such holder, provided, however, that such
parties may further agree for the payment of such Allowed Priority Tax Claim to occur at a later
date, or (3) at the option of the Debtors, Cash in the aggregate amount of such Allowed Priority
Tax Claim payable in installment payments over a period not more than five years after the Petition
Date pursuant to section 1129(a)(9)(C) of the Bankruptcy Code. To the extent any Allowed Priority
Tax Claim is not due and owing on the Effective Date, such Claim shall be paid in full in Cash in
accordance with the terms of any agreement between the Debtors and the holder of such Claim, or as
may be due and payable under applicable non-bankruptcy law or in the ordinary course of business.
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ARTICLE III.
CLASSIFICATION, TREATMENT, AND VOTING OF CLAIMS AND INTERESTS
A. Sub Plans
The Plan contemplates Confirmation and Consummation through either of two mutually exclusive
sub plansthe Rights Offering Sub Plan or the Claims Conversion Sub Plan. Except as otherwise
provided in ARTICLE XIII of the Plan, to the extent that both the Rights Offering and the Exit
Financing are consummated, the Debtors will proceed with Consummation of the Rights Offering Sub
Plan. To the extent that either of the Rights Offering or the Exit Financing is not consummated,
the Debtors will proceed with Confirmation and/or Consummation, as applicable, of the Claims
Conversion Sub Plan, subject to the terms of the Plan Support Agreement.
B. Classification of Claims and Interests
The Plan constitutes a separate plan of reorganization for each Debtor. Except for the Claims
addressed in ARTICLE II, all Claims and Interests are classified in the Classes set forth below
pursuant to section 1122 of the Bankruptcy Code. Classes of Claims and Interests shall be the same
under each of the Rights Offering Sub Plan and the Claims Conversion Sub Plan, provided,
certain Classes of Claims shall receive different treatment under the Rights Offering Sub Plan than
under the Claims Conversion Sub Plan, as specified below. In accordance with section 1123(a)(1) of
the Bankruptcy Code, the Debtors have not classified Administrative Claims, Professional Claims,
DIP Facility Claims, and Priority Tax Claims. A Claim or Interest is classified in a particular
Class only to the extent that the Claim or Interest qualifies within the description of that Class
and is classified in other Classes to the extent that any portion of the Claim or Interest
qualifies within the description of such other Classes. A Claim or Interest is also classified in
a particular Class for the purpose of receiving distributions pursuant to the Plan only to the
extent that such Claim or Interest is an Allowed Claim or Interest in that Class and has not been
paid, released, or otherwise satisfied prior to the Effective Date.
1. Class Identification: Below is a chart assigning each Class a letter for purposes
of identifying each separate Class.
Class | Claim or Interest | Status | Voting Rights | |||
A
|
ABL Claims | Unimpaired | Conclusively Presumed to Accept | |||
B
|
Secured Tax Claims | Unimpaired | Conclusively Presumed to Accept | |||
C
|
Other Secured Claims | Unimpaired | Conclusively Presumed to Accept | |||
D
|
Other Priority Claims | Unimpaired | Conclusively Presumed to Accept |
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Class | Claim or Interest | Status | Voting Rights | |||
E
|
Term Loan Facility Claims | Unimpaired under the Rights Offering Sub Plan. Impaired under the Claims Conversion Sub Plan. | Entitled to Vote, but Conclusively Presumed to Accept under the Rights Offering Sub Plan | |||
F
|
7.00% Senior Notes Claims and 8.25% Senior Notes Claims | Impaired | Entitled to Vote | |||
G
|
12.25% Senior Notes Claims | Impaired | Entitled to Vote | |||
H
|
General Unsecured Claims | Impaired | Entitled to Vote | |||
I
|
Intercompany Claims | Unimpaired | Conclusively Presumed to Accept | |||
J
|
Interests in Visteon Corporation | Impaired | Deemed to Reject | |||
K
|
Intercompany Interests | Unimpaired | Conclusively Presumed to Accept | |||
L
|
Section 510(b) Claims | Impaired | Deemed to Reject |
C. Treatment of Classes of Claims and Interests
1. Class A ABL Claims
a. | Classification: Class A consists of all ABL Claims. | ||
b. | Treatment: Except to the extent that a holder of an Allowed Class A Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class A Claim, each such holder of an Allowed Class A Claim shall be paid in full in Cash on the Effective Date, or as soon as practicable thereafter. | ||
c. | Voting: Class A is Unimpaired, and holders of Allowed Class A Claims are conclusively presumed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of Allowed Class A Claims are not entitled to vote to accept or reject the Plan. |
2. Class B Secured Tax Claims
a. | Classification: Class B consists of all Secured Tax Claims. | ||
b. | Treatment: Except to the extent that a holder of an Allowed Class B Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class B Claim, each such holder of an Allowed Class B Claim shall receive, at the sole option of the Debtors or the Reorganized Debtors, as applicable: |
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(i) | Cash on the Effective Date, or as soon as practicable thereafter, in an amount equal to such Allowed Class B Claim; or | ||
(ii) | commencing on the Effective Date and continuing over a period not exceeding five years from the Petition Date, equal semi-annual Cash payments in an aggregate amount equal to such Allowed Class B Claim, together with interest at the applicable non-default contract rate under non-bankruptcy law, subject to the sole option of the Debtors or the Reorganized Debtors to prepay the entire amount of such Allowed Claim; or | ||
(iii) | regular Cash payments in a manner not less favorable than the most favored non-priority unsecured Claim provided for by the Plan. |
c. | Voting: Class B is Unimpaired, and holders of Allowed Class B Claims are conclusively presumed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of Allowed Class B Claims are not entitled to vote to accept or reject the Plan. |
3. Class C Other Secured Claims
a. | Classification: Class C consists of all Other Secured Claims. | ||
b. | Treatment: Except to the extent that a holder of an Allowed Class C Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class C Claim, each such holder of an Allowed Class C Claim shall, at the sole option of the Debtors or the Reorganized Debtors, as applicable: |
(i) | have its Allowed Class C Claim reinstated and rendered Unimpaired in accordance with section 1124(2) of the Bankruptcy Code, notwithstanding any contractual provision or applicable non-bankruptcy law that entitles the holder of an Allowed Class C Claim to demand or receive payment of such Allowed Class C Claim prior to the stated maturity of such Allowed Class C Claim from and after the occurrence of a default; or | ||
(ii) | receive Cash in an amount equal to such Allowed Class C Claim, including any interest on such Allowed Class C Claim required to be paid pursuant to section 506(b) of the Bankruptcy Code, on the later of the Effective Date and the date such Allowed Class C Claim becomes an Allowed Class C Claim, or as soon as practicable thereafter; or | ||
(iii) | receive the collateral securing its Allowed Class C Claim and any interest on such Allowed Class C Claim required to be paid pursuant to section 506(b) of the Bankruptcy Code. |
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c. | Voting: Class C is Unimpaired, and holders of Allowed Class C Claims are conclusively presumed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of Allowed Class C Claims are not entitled to vote to accept or reject the Plan. |
4. Class D Other Priority Claims
a. | Classification: Class D consists of all Other Priority Claims. | ||
b. | Treatment: Except to the extent that a holder of an Allowed Class D Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class D Claim, each such holder of an Allowed Class D Claim shall be paid in full in Cash on the later of (i) the Effective Date, or as soon as practicable thereafter and (ii) the date such Class D Claim becomes Allowed, or as soon as practicable thereafter. | ||
c. | Voting: Class D is Unimpaired, and holders of Allowed Class D Claims are conclusively presumed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of Allowed Class D Claims are not entitled to vote to accept or reject the Plan. |
5. Class E Term Loan Facility Claims
a. | Classification: Class E consists of the Term Loan Facility Claims. | ||
b. | Allowance: On the Effective Date, the Term Loan Facility Claims shall be Allowed in the aggregate amount of $1,629.34 million, measured as of June 29, 2010, plus, if applicable, any interest accrued on such Allowed Claims between June 30, 2010 and the Effective Date. | ||
c. | Treatment: Holders of Allowed Class E Claims will receive the following treatment under the Rights Offering Sub Plan and the Claims Conversion Sub Plan, respectively: |
(i) | Rights Offering Sub Plan: Except to the extent that a holder of an Allowed Class E Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class E Claim, each such holder of an Allowed Class E Claim shall be paid in full in Cash on the Effective Date, or as soon as practicable thereafter. | ||
(ii) | Claims Conversion Sub Plan: Except to the extent that a holder of an Allowed Class E Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class E Claim, each such holder of an Allowed Class E Claim shall receive on the Effective |
23
Date, or as soon as practicable thereafter, its Pro Rata portion of 85.0% of the Distributable Equity. |
Under either of the Rights Offering Sub Plan or the Claims Conversion Sub Plan, the consideration provided under this ARTICLE III.C.5.c shall be the sole source of recovery for the Allowed Class E Claims, and holders of Class E Claims shall have no recourse against any non-Debtor Affiliates and shall have been deemed to waive any and all claims against any non-Debtor Affiliates. | |||
d. | Voting: Holders of Allowed Class E Claims are entitled to vote to accept or reject the Plan, provided, however, that if the Debtors proceed to Confirmation with the Rights Offering Sub Plan such holders would be Unimpaired (and conclusively presumed to accept the Plan) in accordance with section 1124 of the Bankruptcy Code. |
6. Class F 7.00% Senior Notes Claims and 8.25% Senior Notes Claims
a. | Classification: Class F consists of the 7.00% Senior Notes Claims and the 8.25% Senior Notes Claims. | ||
b. | Allowance: On the Effective Date, the 7.00% Senior Notes Claims shall be Allowed in the aggregate amount of $456.82 million, and the 8.25% Senior Notes Claims shall be Allowed in the aggregate amount of $211.41 million. | ||
c. | Treatment: Holders of Allowed Class F Claims will receive the following treatment under the Rights Offering Sub Plan and the Claims Conversion Sub Plan, respectively: |
(i) | Rights Offering Sub PlanNon-Eligible Holders: Except to the extent that a Non-Eligible Holder of an Allowed Class F Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every applicable Allowed Class F Claim, each such Non-Eligible Holder of an Allowed Class F Claim shall receive on the Effective Date, or as soon as practicable thereafter, (A) the Cash Amount, and (B) its Pro Rata Allocation of 5.0% of the Distributable Equity. | ||
(ii) | Rights Offering Sub PlanEligible Holders: Except to the extent that an Eligible Holder of an Allowed Class F Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every applicable Allowed Class F Claim, each such Eligible Holder of an Allowed Class F Claim shall receive its Pro Rata Allocation of: (A) the Subscription Rights and (B) on the Effective Date, or as soon as practicable thereafter, 5.0% of the Distributable Equity. |
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(iii) | Claims Conversion Sub Plan: Except to the extent that a holder of an Allowed Class F Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class F Claim, each such holder of an Allowed Class F Claim shall receive on the Effective Date, or as soon as practicable thereafter, its Pro Rata portion of 9.0% of the Distributable Equity. |
d. | Voting: Class F is Impaired and holders of Allowed Class F Claims are entitled to vote to accept or reject the Plan. |
7. Class G 12.25% Senior Notes Claims
a. | Classification: Class G consists of the 12.25% Senior Notes Claims. | ||
b. | Allowance: On the Effective Date, the 12.25% Senior Notes Claims shall be Allowed in the aggregate amount of $202.36 million. | ||
c. | Treatment: Holders of Allowed Class G Claims will receive the following treatment under the Rights Offering Sub Plan and the Claims Conversion Sub Plan, respectively: |
(i) | Rights Offering Sub PlanNon-Eligible Holders: Except to the extent that a Non-Eligible Holder of an Allowed Class G Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every applicable Allowed Class G Claim, each such Non-Eligible Holder of an Allowed Class G Claim shall receive on the Effective Date, or as soon as practicable thereafter: |
(A) | the Cash Amount; | ||
(B) | its Pro Rata Allocation of 5.0% of the Distributable Equity; and | ||
(C) | its Pro Rata portion of the Guaranty Equity Amount. |
(ii) | Rights Offering Sub PlanEligible Holders: Except to the extent that an Eligible Holder of an Allowed Class G Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every applicable Allowed Class G Claim, each such Eligible Holder of an Allowed Class G Claim shall receive: |
(A) | its Pro Rata Allocation of the Subscription Rights; |
25
(B) | on the Effective Date, or as soon as practicable thereafter, its Pro Rata Allocation of 5.0% of the Distributable Equity; and | ||
(C) | on the Effective Date, or as soon as practicable thereafter, its Pro Rata portion of the Guaranty Equity Amount. |
(iii) | Claims Conversion Sub Plan: Except to the extent that a holder of an Allowed Class G Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class G Claim, each such holder of an Allowed Class G Claim shall receive on the Effective Date, or as soon as practicable thereafter, its Pro Rata portion of 6.0% of the Distributable Equity. |
Under either of the Rights Offering Sub Plan or the Claims Conversion Sub Plan, the consideration provided under this ARTICLE III.C.7.c shall be the sole source of recovery for the Allowed Class G Claims, and holders of Class G Claims shall have no recourse against any non-Debtor Affiliates and shall have been deemed to waive any and all claims against any non-Debtor Affiliates. | |||
d. | Voting: Class G is Impaired and holders of Allowed Class G Claims are entitled to vote to accept or reject the Plan. |
8. Class H General Unsecured Claims
a. | Classification: Class H consists of all General Unsecured Claims. | ||
b. | Treatment: Except to the extent that a holder of an Allowed Class H Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class H Claim, each holder of an Allowed Class H Claim shall receive on the Effective Date, or as soon as practicable thereafter, Cash equal to (i) the lesser of (A) its Pro Rata portion of $20.0 million or (B) 100% of the amount of such holders Allowed Class H Claim, if such holders Allowed Class H Claim is held against Visteon International Holdings, Inc. or (ii) if such holders Allowed Class H Claim is held against any other Debtor, the lesser of (A) its Pro Rata portion of $141.0 million or (B) 50% of the amount of such holders Allowed Class H Claim. | ||
c. | Voting: Class H is Impaired and holders of Allowed Class H Claims are entitled to vote to accept or reject the Plan. |
9. Class I Intercompany Claims
a. | Classification: Class I consists of all Intercompany Claims. |
26
b. | Treatment: Holders of Allowed Class I Claims shall not receive any distributions on account of such Allowed Class I Claims; provided, however, the Debtors reserve the right to reinstate any or all Allowed Class I Claims on or after the Effective Date (upon consultation with the Requisite Investors). | ||
c. | Voting: Class I is Unimpaired, and holders of Allowed Class I Claims are conclusively presumed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of Allowed Class I Claims are not entitled to vote to accept or reject the Plan. |
10. Class J Interests in Visteon Corporation
a. | Classification: Class J consists of all Interests in Visteon Corporation. | ||
b. | Treatment: On the Effective Date, Allowed Class J Interests shall be deemed automatically cancelled without further action by the Debtors or Reorganized Debtors and the obligations of the Debtors and Reorganized Debtors thereunder shall be discharged. | ||
c. | Voting: Class J is Impaired and holders of Allowed Class J Interests are deemed to have rejected the Plan pursuant to section 1126(g) of the Bankruptcy Code. Therefore, holders of Allowed Class J Interests are not entitled to vote to accept or reject the Plan. |
11. Class K Intercompany Interests
a. | Classification: Class K consists of all Intercompany Interests. | ||
b. | Treatment: Holders of Allowed Class K Interests shall not receive any distributions on account of such Allowed Class K Interests; provided, however, the Debtors reserve the right to reinstate any or all Allowed Class K Interests on or after the Effective Date. | ||
c. | Voting: Class K is Unimpaired, and holders of Allowed Class K Interests are conclusively presumed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of Allowed Class K Interests are not entitled to vote to accept or reject the Plan. |
12. Class L Section 510(b) Claims
a. | Classification: Class L consists of all Section 510(b) Claims. | ||
b. | Treatment: Holders of Allowed Class L Claims shall not receive any distributions on account of such Allowed Class L Claims. On the Effective Date, all Class L Claims shall be discharged. |
27
c. | Voting: Class L is Impaired and holders of Allowed Class L Claims are deemed to have rejected the Plan pursuant to section 1126(g) of the Bankruptcy Code. Therefore, holders of Allowed Class L Claims are not entitled to vote to accept or reject the Plan. |
D. Special Provision Governing Unimpaired Claims
Except as otherwise provided in the Plan, nothing under the Plan shall affect the Debtors or
the Reorganized Debtors rights in respect of any Unimpaired Claim, including all rights in respect
of legal and equitable defenses to or setoffs or recoupments against any such Unimpaired Claim.
ARTICLE IV.
PROVISIONS FOR IMPLEMENTATION OF THE PLAN
A. General Settlement of Claims
Pursuant to section 1123 of the Bankruptcy Code and Bankruptcy Rule 9019, and in consideration
for the classification, distributions, releases, and other benefits provided under the Plan, on the
Effective Date, the provisions of the Plan shall constitute a good-faith compromise and settlement
of all Claims and Interests and controversies resolved pursuant to the Plan.
B. New Visteon Common Stock
The issuance of the New Visteon Common Stock by Reorganized Visteon, including options for the
purchase thereof or other equity awards, if any, providing for the issuance of New Visteon Common
Stock, is authorized without the need for any further corporate action or without any further
action by the Debtors or Reorganized Visteon, as applicable. Pursuant to the Plan, the Reorganized
Visteon Charter shall authorize the issuance and distribution on or after the Effective Date of
shares of New Visteon Common Stock to the Distribution Agent for the benefit of holders of Allowed
Claims in each of Classes E, F, and G under the Claims Conversion Sub Plan, and Classes F and G
under the Rights Offering Sub Plan (and as required to satisfy the Debtors obligations under the
Equity Commitment Agreement), subject, in either case, to dilution by the Management Equity
Incentive Program and, if applicable, the Guaranty Equity Amount. All of the shares of New Visteon
Common Stock issued pursuant to the Plan shall be duly authorized, validly issued, fully paid, and
non-assessable.
C. Registration Exemptions
The offering, issuance, and distribution of any Securities pursuant to the Plan and any and
all settlement agreements incorporated therein will be exempt from the registration requirements of
section 5 of the Securities Act pursuant to section 1145 of the Bankruptcy Code, section 4(2) of
the Securities Act, or any other available exemption from registration under the Securities Act, as
applicable. In addition, under section 1145 of the Bankruptcy Code, if applicable, any Securities
issued pursuant to the Plan and any and all settlement agreements incorporated therein will be
freely transferable under the Securities Act by the recipients thereof, subject to (1) the
28
provisions of section 1145(b)(1) of the Bankruptcy Code relating to the definition of an
underwriter in section 2(a)(11) of the Securities Act, and compliance with any applicable
state or foreign securities laws, if any, and the rules and regulations of the United States
Securities and Exchange Commission, if any, applicable at the time of any future transfer of such
Securities or instruments, (2) the restrictions, if any, on the transferability of such Securities
and instruments, including restrictions contained in the Equity Commitment Agreement, and (3) any
other applicable regulatory approval.
Certain holders of New Visteon Common Stock pursuant to ARTICLE III.C will be entitled to
customary registration rights and shall be subject to customary transfer restrictions following a
public offering of the New Visteon Common Stock, in accordance with the terms and conditions of a
registration rights agreement by and among Reorganized Visteon and such holders. Under the Claims
Conversion Sub Plan, Reorganized Visteon shall use its commercially reasonable efforts to obtain
approval of the New Visteon Common Stock for listing on the New York Stock Exchange as soon as
reasonably practicable. Under the Rights Offering Sub Plan, Reorganized Visteon shall not, until
the earlier of the date that (1) is the three month anniversary of the Effective Date and (2) the
Securities and Exchange Commission declares effective a shelf registration statement in connection
with the resale of New Visteon Common Stock, list such stock on the New York Stock Exchange, the
Nasdaq Stock Market, or any other national securities exchange unless pursuant to a written request
of the Requisite Investors, in which case Reorganized Visteon shall use commercially reasonable
efforts to list and maintain the listing of the New Visteon Common Stock on the New York Stock
Exchange, the Nasdaq Stock Market, or any other national stock exchange as requested by the
Requisite Investors.
D. Subordination
The classification and treatment of all Claims and Interests under the Plan shall conform to
and with the respective contractual, legal, and equitable subordination rights of such Claims and
Interests, and any such rights shall be settled, compromised, and released pursuant to the Plan.
E. Vesting of Assets in the Reorganized Debtors
Except as otherwise provided in the Plan or any agreement, instrument, or other document
incorporated in the Plan, on the Effective Date, all property in each Estate, all Causes of Action,
and any property acquired by any of the Debtors pursuant to the Plan shall vest in each respective
Reorganized Debtor, free and clear of all Liens, Claims, charges, or other encumbrances. On and
after the Effective Date, except as otherwise provided in the Plan, each Reorganized Debtor may
operate its business and may use, acquire, or dispose of property and compromise or settle any
Claims, Interests, or Causes of Action without supervision or approval by the Bankruptcy Court and
free of any restrictions of the Bankruptcy Code or Bankruptcy Rules.
29
F. Cancellation of Notes, Instruments, Certificates and Other Documents
On the Effective Date, except to the extent otherwise provided, all notes, instruments,
Certificates, and other documents evidencing Claims or Interests shall be cancelled and the
obligations of the Debtors or Reorganized Debtors and the non-Debtor Affiliates thereunder or
in any way related thereto shall be discharged; provided, however, that
notwithstanding Confirmation or the occurrence of the Effective Date, any indenture or agreement
that governs the rights of the holder of a Claim shall continue in effect solely for purposes of
(1) allowing holders to receive distributions under the Plan, and (2) allowing and preserving the
rights of the ABL Facility Administrative Agent, the DIP Facility Administrative Agent, the Term
Loan Facility Administrative Agent, and the Notes Trustee, as applicable, to make distributions on
account of Claims as provided in ARTICLE IX.
G. Issuance of New Securities; Execution of Plan Documents
Except as otherwise provided in the Plan or the Equity Commitment Agreement, the Reorganized
Debtors shall issue on the Effective Date all Securities, notes, instruments, Certificates, and
other documents required to be issued pursuant to the Plan.
H. Acquisition of Assets Held by Oasis Trust
On the Confirmation Date, Visteon Corporation shall exercise its option under that certain
Master Lease, dated October 31, 2002, as amended, to acquire from Oasis Trust all of its rights,
title, and interests in and to that property located at One Village Center Drive, Van Buren
Township, Wayne County, Michigan 48111, in accordance with the terms of such agreement and the
Plan, and free and clear of all Liens, Claims, charges, or other encumbrances and stamp tax,
transfer tax, and similar taxes pursuant to sections 1123(a)(5)(D), 1141(c), and 1146(a) of the
Bankruptcy Code.
I. Post-Confirmation Property Sales
To the extent the Debtors or Reorganized Debtors, as applicable, purchase or sell any property
prior to or including the date that is one year after the Confirmation Date, the Debtors or
Reorganized Debtors, as applicable, may elect to purchase or sell such property pursuant to
sections 363, 1123(a)(5)(D), 1141(c), and 1146(a) of the Bankruptcy Code.
J. Corporate Action
Each of the matters provided for by the Plan involving the corporate structure of the Debtors
or corporate or related actions to be taken by or required of the Reorganized Debtors, whether
taken prior to or as of the Effective Date, shall be authorized without the need for any further
corporate action or without any further action by the Debtors or the Reorganized Debtors, as
applicable. Such actions may include (1) the adoption and filing of the Reorganized Visteon
Charter and Reorganized Visteon Bylaws, (2) the appointment of the New Board, (3) the adoption and
implementation of the Management Equity Incentive Program, (4) the authorization, issuance and
distribution of the New Visteon Common Stock, including, if applicable, pursuant to the Rights
Offering, and other Securities to be authorized, issued and
30
distributed pursuant to the Plan, and
(5) the consummation and implementation of the Exit Financing.
K. Certificate of Incorporation and Bylaws
The certificates of incorporation and bylaws (or other formation documents relating to limited
liability companies, limited partnerships, or other forms of Entity) of the Debtors (other than
Visteon Corporation) shall be amended in a form as may be required to be consistent with the
provisions of the Plan, and the Bankruptcy Code. Under the Claims Conversion Sub Plan, the
certificate of incorporation and bylaws of Visteon Corporation shall be amended as may be required
to be consistent with the provisions of the Plan, and the Bankruptcy Code, and the form and
substance of the Reorganized Visteon Charter and Reorganized Visteon Bylaws shall be included in
the Plan Supplement. Under the Rights Offering Sub Plan, the certificate of incorporation and
bylaws of Visteon Corporation shall be as set forth in the Reorganized Visteon Charter and
Reorganized Visteon Bylaws. Under either the Claims Conversion Sub Plan or Rights Offering Sub
Plan, the Reorganized Visteon Charter will among other things, (1) authorize the issuance of the
shares of New Visteon Common Stock; and (2) pursuant to and only to the extent required by section
1123(a)(6) of the Bankruptcy Code, include a provision prohibiting the issuance of non-voting
Equity Securities.
After the Effective Date, each Reorganized Debtor may amend and restate its certificate of
incorporation and other constituent documents as permitted by the laws of its respective states,
provinces, or countries of formation and its respective charters and bylaws.
L. Effectuating Documents, Further Transactions
On and after the Effective Date, the Reorganized Debtors, and the officers and members of the
boards of directors thereof, are authorized to and may issue, execute, deliver, file, or record
such contracts, Securities, instruments, releases, and other agreements or documents and take such
actions as may be necessary or appropriate to effectuate, implement, and further evidence the terms
and conditions of the Plan and the Securities issued pursuant to the Plan in the name of and on
behalf of the Reorganized Debtors, without the need for any approvals, authorizations, or consents
except for those expressly required pursuant to the Plan.
M. Section 1146(a) Exemption
Pursuant to section 1146(a) of the Bankruptcy Code, any transfers of property pursuant to the
Plan shall not be subject to any document recording tax, stamp tax, conveyance fee, intangibles or
similar tax, mortgage tax, stamp act, real estate transfer tax, mortgage recording tax, or other
similar tax or governmental assessment, and upon entry of the Confirmation Order, the appropriate
state or local governmental officials or agents shall forgo the collection of any such tax or
governmental assessment and accept for filing and recordation any of the foregoing instruments or
other documents without the payment of any such tax, recordation fee, or governmental assessment.
31
N. Directors and Officers of Reorganized Visteon
On the Effective Date, the term of the current members of the board of directors of Visteon
Corporation shall expire, and the New Board shall be appointed. The existing officers of Visteon
Corporation shall serve in their current capacities in Reorganized Visteon. On and after the
Effective Date, each director or officer of Reorganized Visteon shall serve pursuant to the
terms of the Reorganized Visteon Charter, the Reorganized Visteon Bylaws, or other constituent
documents, and applicable state corporation law; provided, under the Claims Conversion Sub
Plan, subject to the Reorganized Visteon Bylaws relating to the filling of vacancies on the New
Board, the members of the New Board as constituted on the Effective Date will continue to serve at
least until the first annual meeting of stockholders after the Effective Date, which meeting shall
not take place until at least 12 months after the Effective Date; provided further,
under the Rights Offering Sub Plan, the members of the New Board as constituted on the Effective
Date will continue to serve for a period after the Effective Date as set forth in the Board
Selection Term Sheet.
O. Directors and Officers of Reorganized Debtors Other Than Visteon Corporation
Unless otherwise provided in the Debtors disclosure pursuant to section 1129(a)(5) of the
Bankruptcy Code, the officers and directors of each of the Debtors other than Visteon Corporation
shall continue to serve in their current capacities after the Effective Date. The classification
and composition of the boards of directors of the Reorganized Debtors other than Reorganized
Visteon shall be consistent with their respective new certificates of incorporation and bylaws.
Each such director or officer shall serve from and after the Effective Date pursuant to the terms
of such new certificate of incorporation, bylaws, other constituent documents, and applicable state
corporation law. In accordance with section 1129(a)(5) of the Bankruptcy Code, the identities and
affiliations of any Person proposed to serve as an officer or director of the Reorganized Debtors
other than Reorganized Visteon shall have been disclosed at or before the Confirmation Hearing.
P. Employee Benefits and Incentive Plans
Unless otherwise specified in this ARTICLE IV.P, and except in connection and not inconsistent
with those employee benefit and incentive programs that shall be treated, without further action of
the Reorganized Debtors or the New Board, as set forth in the Management Equity Incentive Program
Term Sheet and the Employee Benefit and Incentive Programs Term Sheet attached to the Equity
Commitment Agreement, on and after the Effective Date, subject to any Final Order, the Reorganized
Debtors shall have the sole discretion to (1) amend, adopt, assume, and/or honor, in the ordinary
course of business or as otherwise provided for herein, any contracts, agreements, policies,
programs, including the Incentive Program, and plans for, among other things, compensation,
pursuant to the terms thereof or hereof, including any incentive plan, as applicable, including
health care benefits, disability benefits, deferred compensation benefits, savings, severance
benefits, retirement benefits, welfare benefits, workers compensation benefits, life insurance,
and accidental death and dismemberment insurance for the directors, officers, and employees of any
of the Debtors who served in such capacity from and after the Petition Date, and (2) honor, in the
ordinary course of business, Claims of employees employed as of the Effective Date for accrued
vacation time arising prior to the Petition Date.
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As of the Effective Date, the Reorganized Debtors shall continue the Pension Plans in
accordance with, and subject to, their terms, ERISA, and the Internal Revenue Code, and shall
preserve all of their rights thereunder. All Proofs of Claim filed on account of Claims in
connection with the termination of the Pension Plans shall be deemed disallowed and expunged as of
the Effective Date without any further action of the Debtors or Reorganized Debtors and
without any further action, order, or approval of the Bankruptcy Court. Notwithstanding
anything to the contrary in ARTICLE IV.P of the Plan, no provision in the Plan or the Confirmation
Order, or proceeding within the Chapter 11 Cases, shall in any way be construed as discharging,
releasing, or relieving the Debtors, the Reorganized Debtors, or any other party in any capacity,
from any liability with respect to the Pension Plans under any law, governmental policy, or
regulatory provision, including for breach of fiduciary duty.
On and after the Effective Date, and in accordance with applicable law and administrative
requirements, the Reorganized Debtors shall have no liability for OPEB and shall have no obligation
to provide or offer OPEB to their employees and retirees and their spouses, surviving spouses,
dependents or other beneficiaries. The cessation shall be administered on a claims incurred
basis, and the Reorganized Debtors shall retain responsibility for all claims incurred but either
unfiled or unpaid as of the date of cessation of the OPEB.
Q. Employment Agreement & Change in Control Agreements
Reorganized Visteon shall be authorized to enter into that certain employment agreement with
Donald J. Stebbins delivered by the Debtors to the Requisite Parties on the date of the filing of
the Plan with the Bankruptcy Court, effective as of the Effective Date, without any further action,
order, or approval of the New Board or the Bankruptcy Court, as applicable. Also, on the Effective
Date, Reorganized Visteon shall adopt, approve, and authorize change in control agreements with
respect to certain of Reorganized Visteons officers, in the form delivered by the Debtors to the
Requisite Parties on the date of the filing of the Plan with the Bankruptcy Court, without further
action, order, or approval of the New Board.
R. Intercompany Account Settlement
The Debtors and the Reorganized Debtors, and their respective Affiliates, will be entitled to
transfer funds between and among themselves as they determine to be necessary or appropriate to
enable the Reorganized Debtors to satisfy their obligations under the Plan. Except as set forth
herein, any changes in intercompany account balances resulting from such transfers will be
accounted for and settled in accordance with the Debtors historical intercompany account
settlement practices and will not violate the terms of the Plan.
S. Preservation of Rights of Action
Unless any Causes of Action against an Entity are expressly waived, relinquished, exculpated,
released, compromised, or settled in the Plan or a Final Order, in accordance with section 1123(b)
of the Bankruptcy Code, the Reorganized Debtors shall retain and may enforce all rights to commence
and pursue, as appropriate, any and all Causes of Action, whether arising before or after the
Petition Date, including any actions specifically enumerated in the Plan Supplement, and the
Reorganized Debtors rights to commence, prosecute, or settle such Causes
33
of Action shall be
preserved notwithstanding the occurrence of the Effective Date. The Reorganized Debtors may pursue
such Causes of Action, as appropriate, in accordance with the best interests of the Reorganized
Debtors. No Entity may rely on the absence of a specific reference in the Plan, the Plan
Supplement, or the Disclosure Statement to any Cause of Action against them as any indication that
the Debtors or the Reorganized Debtors will not
pursue any and all available Causes of Action against them. The Debtors and the Reorganized
Debtors expressly reserve all rights to prosecute any and all Causes of Action against any Entity,
except as otherwise expressly provided in the Plan. Unless any Causes of Action against an Entity
are expressly waived, relinquished, exculpated, released, compromised, or settled in the Plan or a
Bankruptcy Court order, the Reorganized Debtors expressly reserve all Causes of Action, for later
adjudication, and, therefore no preclusion doctrine, including the doctrines of res judicata,
collateral estoppel, issue preclusion, claim preclusion, estoppel (judicial, equitable or
otherwise), or laches, shall apply to such Causes of Action upon, after, or as a consequence of the
Confirmation or Consummation.
The Reorganized Debtors reserve and shall retain the foregoing Causes of Action
notwithstanding the rejection of any Executory Contract or Unexpired Lease during the Chapter 11
Cases or pursuant to the Plan. In accordance with section 1123(b)(3) of the Bankruptcy Code, any
Causes of Action that a Debtor may hold against any Entity shall vest in the Reorganized Debtors.
The applicable Reorganized Debtor, through its authorized agents or representatives, shall retain
and may exclusively enforce any and all such Causes of Action. The Reorganized Debtors shall have
the exclusive right, authority, and discretion to determine and to initiate, file, prosecute,
enforce, abandon, settle, compromise, release, withdraw, or litigate to judgment any such Causes of
Action and to decline to do any of the foregoing without the consent or approval of any third party
or any further notice to or action, order, or approval of the Bankruptcy Court.
T. Restructuring Transactions
On or prior to the Effective Date, the Debtors or the Reorganized Debtors may enter into the
following transactions and take any actions as may be necessary or appropriate to effect a
corporate restructuring of their respective businesses or a corporate restructuring of the overall
corporate structure of the Reorganized Debtors, as and to the extent provided therein, with the
consent of the Requisite Parties. The Restructuring Transactions may include the VIHI
Restructuring (to which the Requisite Investors shall be deemed to have consented by virtue of
their execution of the Equity Commitment Agreement, but subject to the terms and conditions
thereof), one or more inter-company mergers, consolidations, amalgamations, arrangements,
continuances, restructurings, conversions, dissolutions, transfers, liquidations, or other
corporate transactions as may be determined by the Debtors or the Reorganized Debtors, as
applicable, to be necessary or appropriate. The actions to effect the Restructuring Transactions
may include: (1) the execution and delivery of appropriate agreements or other documents of
merger, amalgamation, consolidation, restructuring, conversion, disposition, transfer, arrangement,
continuance, dissolution, sale, purchase, or liquidation containing terms that are consistent with
the terms of the Plan and the Equity Commitment Agreement and that satisfy the requirements of
applicable law and any other terms to which the relevant entities may agree; (2) the execution and
delivery of appropriate instruments of transfer, assignment, assumption, or delegation of any
asset, property, right, liability, debt, or obligation on terms consistent with the terms of the
Plan and the Equity Commitment Agreement and having other terms for which the applicable parties
34
agree; (3) the filing of appropriate certificates or articles of incorporation, reincorporation,
merger, consolidation, conversion, amalgamation, arrangement, continuance, or dissolution pursuant
to applicable state or provincial law; (4) pledging, granting of liens or security interests over,
assuming or guarantying obligations or taking such similar actions as may be necessary to preserve
the rights and collateral interests of the secured creditors of the Debtors and their
subsidiaries at all times prior to the effectiveness and consummation of the Plan; and (5) all
other actions that the applicable entities determine to be necessary or appropriate, including
making filings or recordings that may be required by applicable law in connection with the
Restructuring Transactions.
U. Post-Effective Date Financing
Unless otherwise refinanced in connection with the Exit Financing, notwithstanding any
provision in the Plan to the contrary or section 1141(c) of the Bankruptcy Code, the U.S. Bank L/C
Facility Documents and the Currency Contracts, and all rights and obligations of, and Liens held
by, the parties thereunder in connection therewith, shall survive and remain in full force and
effect on and after the Effective Date in accordance with the terms of the U.S. Bank L/C Facility
Documents and Currency Contracts, respectively, and the Final Orders entered on November 12, 2009
in connection therewith [Docket Nos. 1296 and 1297]. On the Effective Date, any and all rights and
obligations of the Debtors under the U.S. Bank L/C Facility Documents and the Currency Contracts
shall vest in, or become the obligations of, the applicable Reorganized Debtors.
V. Corporate Existence
Except as otherwise provided in the Plan, each Debtor shall continue to exist after the
Effective Date as a separate corporate Entity, limited liability company, partnership, or other
form, as the case may be, with all the powers of a corporation, limited liability company,
partnership, or other form, as the case may be, pursuant to the applicable law in the jurisdiction
in which each applicable Debtor is incorporated or formed and pursuant to the respective
certificate of incorporation and bylaws (or other formation documents) in effect prior to the
Effective Date, except to the extent such certificate of incorporation and bylaws (or other
formation documents) are amended by the Plan or otherwise, and to the extent such documents are
amended, such documents are deemed to be amended pursuant to the Plan and without any further
notice to or action, order, or approval of the Bankruptcy Court or any other court of competent
jurisdiction (other than any requisite filings required under applicable state, provincial, or
federal law).
W. Tax Reporting Matters
All parties (including the Reorganized Debtors and holders of Claims and Interests) shall
report for all federal income tax purposes in a manner consistent with the Plan.
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ARTICLE V.
RIGHTS OFFERING
A. Election Form
In accordance with the terms of the Rights Offering Procedures, the Debtors will deliver an
Election Form to each holder of an Allowed Senior Notes Claim to determine which holders will be
considered Eligible Holders and which holders will be considered Non-Eligible Holders. To
determine that a holder is an Eligible Holder, such holder must, in accordance with the terms
set forth in the Election Form, validly complete and return an Election Form by the Election
Form Deadline certifying that such holder is an Accredited Investor. To determine that a holder is
a Non-Eligible Holder, such holder must, in accordance with the terms set forth in the Election
Form, validly complete and return an Election Form by the Election Form Deadline certifying that
such holder is not an Accredited Investor. Only Eligible Holders shall be permitted to participate
in the Rights Offering. Only Non-Eligible Holders shall be permitted to receive the Cash Amount.
B. Issuance of Subscription Rights
Each Eligible Holder shall receive Subscription Rights entitling such holder to purchase up to
its Pro Rata Allocation of the Rights Offering Shares. Each Eligible Holder shall have the right,
but not the obligation, to participate in the Rights Offering as set forth herein and in the Rights
Offering Procedures.
C. Oversubscription Rights
Each Eligible Holder that validly exercises in full its Subscription Rights shall be entitled
to elect on the Subscription Form to purchase Rights Offering Shares not otherwise subscribed for
pursuant to validly exercised Subscription Rights by indicating the number of such unsubscribed
shares such Eligible Holder desires to purchase, as set forth herein and in the Rights Offering
Procedures, and subject to the terms of the Equity Commitment Agreement.
D. Transfer Restriction
The Subscription Rights and the Oversubscription Rights are not transferable. Any attempted
transfer is null and void and the Debtors will not treat any purported transferee as the holder of
any Subscription Right or, if applicable, Oversubscription Right. The Subscription Rights and the
Oversubscription Rights shall not be listed or quoted on any public or over-the-counter securities
exchange or quotation system.
E. Subscription Period and Mailing
The Rights Offering shall commence for each Eligible Holder upon its receipt of the
Subscription Form and shall end on the Subscription Expiration Date, unless extended by Visteon
Corporation with the reasonable consent of the Requisite Investors. As soon as practicable after
the Election Form Deadline, Eligible Holders will be mailed Subscription Forms together with
instructions for the proper completion, due execution, and timely delivery of such Subscription
Forms, as well as instructions for payment.
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F. Exercise of Subscription Rights and Oversubscription Rights
Except as provided for in the Equity Commitment Agreement, each Eligible Holder may exercise
all or any portion of such holders Subscription Rights and, if applicable, Oversubscription
Rights, pursuant to the Subscription Form. To exercise its Subscription Rights and, if applicable,
Oversubscription Rights, an Eligible Holder must: (1) return a validly completed Subscription Form
to the Rights Offering Agent so that such Subscription Form is actually received by the Rights
Offering Agent on or before the Subscription Expiration Date and
(2) pay to the Rights Offering Agent on or before the Subscription Expiration Date the
Purchase Price multiplied by the number of shares of New Visteon Common Stock such Eligible Holder
has elected to purchase pursuant to its Subscription Rights and its Oversubscription Rights, in
accordance with the wire instructions set forth on the Subscription Form.
If the Rights Offering Agent for any reason does not receive on or prior to the Subscription
Expiration Date both a validly completed Subscription Form and immediately available funds as set
forth in this ARTICLE V.F from an Eligible Holder, such Eligible Holder shall be deemed to have
relinquished and waived its right to participate in the Rights Offering. The Debtors shall not be
obligated to honor any purported exercise of Subscription Rights or Oversubscription Rights
received by the Rights Offering Agent after the Subscription Expiration Date, regardless of when
the documents relating to such exercise were sent. Once the Eligible Holder has validly exercised
its Subscription Rights and, if applicable, Oversubscription Rights, such exercise will not be
permitted to be revoked, rescinded, or modified.
The payments made in accordance with the Rights Offering shall be deposited and held by the
Rights Offering Agent in an escrow account. The Rights Offering Agent will maintain such account
for the purpose of holding the money for administration of the Rights Offering until the Effective
Date or such other later date at the option of the Reorganized Debtors. The Rights Offering Agent
shall not use such funds for any other purpose and shall not encumber or permit such funds to be
encumbered with any Lien or similar encumbrance. Such funds shall be held in such escrow account
and disbursed only in accordance with the procedures described in this ARTICLE V, the Rights
Offering Procedures, and the Equity Commitment Agreement.
The Debtors may adopt such additional detailed procedures consistent with the provisions of
this ARTICLE V.F, the Rights Offering Procedures, and the Equity Commitment Agreement to more
efficiently administer the exercise of the Subscription Rights, and, if applicable,
Oversubscription Rights.
G. Direct Commitment
The Investors shall be obligated to consummate the Direct Commitment on the terms and subject
to the conditions of the Equity Commitment Agreement.
H. Backstop Commitment
The Investors shall be obligated to consummate their Backstop Commitment with respect to
unsubscribed Rights Offering Shares on the terms and subject to the conditions set forth in the
Equity Commitment Agreement. The Investors shall for the benefit of Reorganized Visteon deliver to
Visteon Corporation, in accordance with section 7.7 of the Equity Commitment
37
Agreement, on the
later of the date that is (1) ten Business Days prior to the date scheduled for the Confirmation
Hearing and (2) five Business Days after delivery of the Purchase Notice funding approval
certificates.
I. Debtors Obligations under the Claims Conversion Sub Plan
Notwithstanding any provision in the Plan, the Plan Support Agreement, the Equity Commitment
Agreement, or the Rights Offering Procedures to the contrary, the Debtors shall not
be obligated under the Claims Conversion Sub Plan to, and shall not, honor any purported
exercise of Subscription Rights or Oversubscription Rights or the satisfaction of the Direct
Commitment or Backstop Commitment.
J. Issuance of Rights Offering Shares
Under the Rights Offering Sub Plan, Rights Offering Shares purchased by Eligible Holders shall
be issued on the Effective Date and distributed on the Effective Date or as soon as practicable
thereafter.
If the number of Rights Offering Shares elected for purchase pursuant to Oversubscription
Rights exceeds the number of unsubscribed Rights Offering Shares, then such unsubscribed Rights
Offering Shares shall be apportioned to Eligible Holders that exercised such Oversubscription
Rights (1) first, to the Lead Investors and their Related Purchasers and their respective
affiliates, (2) second, to the Co-Investors and their Related Purchasers and their respective
affiliates, and (3) last, if any unsubscribed Rights Offering Shares remain unallocated, to the
other Eligible Holders exercising their Oversubscription Rights, in each case pro rata relative to
the number of such shares each such Eligible Holder elected to purchase pursuant to its
Oversubscription Rights and in accordance with section 2.2(e) of the Equity Commitment Agreement.
Any payment made by an Eligible Holder shall be refunded as soon as practicable (1) upon
termination of the Equity Commitment Agreement, (2) if such Eligible Holder has made an
overpayment, in an amount equal to such overpayment, or (3) under the Claims Conversion Sub Plan.
Fractional shares of New Visteon Common Stock shall not be issued upon exercise of the Subscription
Rights or Oversubscription Rights and no compensation shall be paid in respect of such fractional
shares.
ARTICLE VI.
ENTITLEMENT TO AND FUNDING OF CASH AMOUNT RECOVERIES
A. Entitlement to Cash Amount Recoveries
Under the Rights Offering Sub Plan, a Non-Eligible Holder shall be entitled to receive the
Cash Amount only if such Non-Eligible Holder validly completes and returns an Election Form
certifying that it is a Non-Eligible Holder in accordance with the terms set forth in the Election
Form. If a Non-Eligible Holder does not duly satisfy such requirements, such holder shall be
deemed to have relinquished and waived its right to receive the Cash Amount.
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B. Source of Cash for Payment of Cash Amount
Each Cash Recovery Backstop Investor shall deliver to Visteon Corporation on the later of the
date that is (1) ten Business Days prior to the date scheduled for the Confirmation Hearing and (2)
five Business Days after delivery of the Purchase Notice a funding approval certificate from an
officer or a duly authorized agent of such Cash Recovery Backstop Investor certifying that such
Cash Recovery Backstop Investors credit committee (or such similar governing entity that is
responsible for approving such matters in accordance with such Cash Recovery Backstop
Investors normal operations) has approved, subject only to the terms and conditions of the
Rights Offering Sub Plan in accordance with the Plan, the funding by such Cash Recovery Backstop
Investor of its Distributable Commitment Percentage of (1) the aggregate Cash Amount, and (2) the
Purchase Price multiplied by the number of shares of New Visteon Common Stock constituting the Cash
Recovery Subscription Equity. On the Effective Date, each Cash Recovery Backstop Investor shall
pay the applicable amounts set forth in the immediately preceding sentence to Visteon Corporation
by wire transfer of immediately available funds to an account designated by Visteon Corporation in
writing not less than three Business Days prior to the Effective Date.
Notwithstanding any provision in the Plan, the Plan Support Agreement, or the Equity
Commitment Agreement to the contrary, neither the Debtors nor the Cash Recovery Backstop Investors
shall be obligated under the Claims Conversion Sub Plan to, and shall not, honor any purported
entitlement to the Cash Amount.
C. Transfer of New Visteon Common Stock as a Consequence of Cash Amount Distributions
Under the Rights Offering Sub Plan, the Distribution Agent shall on the Effective Date issue,
and shall deliver, on the Effective Date, or as soon as practicable thereafter, to the Cash
Recovery Backstop Investors pro rata relative to their Allotted Portions the Cash Recovery
Subscription Equity.
ARTICLE VII.
TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES
A. Rejection of Executory Contracts and Unexpired Leases
Except as otherwise provided herein, each Executory Contract and Unexpired Lease shall be
deemed automatically rejected pursuant to sections 365 and 1123 of the Bankruptcy Code as of the
Effective Date, unless any such Executory Contract or Unexpired Lease: (1) is listed on the
schedule of Assumed Executory Contracts and Unexpired Leases in the Plan Supplement; (2) has been
previously assumed by the Debtors by Final Order or has been assumed by the Debtors by order of the
Bankruptcy Court as of the Effective Date, which order becomes a Final Order after the Effective
Date; (3) is the subject of a motion to assume or reject pending as of the Effective Date; (4) is
an Intercompany Contract, unless such Intercompany Contract previously was rejected by the Debtors
pursuant to a Final Order, is the subject of a motion to reject pending on the Effective Date, or
is listed on the schedule of Rejected Executory Contracts and
39
Unexpired Leases in the Plan
Supplement; or (5) is otherwise assumed pursuant to the terms herein.
The Confirmation Order will constitute an order of the Bankruptcy Court approving such
rejections pursuant to sections 365 and 1123 of the Bankruptcy Code as of the Effective Date.
Counterparties to Executory Contracts or Unexpired Leases that are deemed rejected as of the
Effective Date shall have the right to assert any Claim on account of the rejection of such
Executory Contracts or Unexpired Leases, including under section 502(g) of the Bankruptcy Code,
subject to compliance with the requirements herein.
Further, the Plan Supplement will contain a schedule of Rejected Executory Contracts and
Unexpired Leases; provided, however, that any Executory Contract and Unexpired
Lease not previously assumed, assumed and assigned, or rejected by an order of the Bankruptcy
Court, and not listed in the schedule of Rejected Executory Contracts and Unexpired Leases will
be rejected on the Effective Date, notwithstanding its exclusion from such schedule.
B. Assumption of Executory Contracts and Unexpired Leases
On the Effective Date, the Reorganized Debtors shall assume all of the Executory Contracts and
Unexpired Leases listed on the schedule of Assumed Executory Contracts and Unexpired leases in
the Plan Supplement and otherwise identified for assumption pursuant to ARTICLE VII.A above. With
respect to each such Executory Contract and Unexpired Lease listed on the schedule of Assumed
Executory Contracts and Unexpired Leases in the Plan Supplement, the Debtors shall have designated
a proposed Cure, and the assumption of such Executory Contracts and Unexpired Leases may be
conditioned upon the disposition of all issues with respect to such Cure. The Confirmation Order
shall constitute an order of the Bankruptcy Court approving any such assumptions pursuant to
sections 365(a) and 1123 of the Bankruptcy Code.
1. Modifications, Amendments, Supplements, Restatements, or Other Agreements. Unless
otherwise provided in the Plan, each Executory Contract or Unexpired Lease that is assumed shall
include all modifications, amendments, supplements, restatements, or other agreements that in any
manner affect such Executory Contract or Unexpired Lease, and all rights related thereto, if any,
including all easements, licenses, permits, rights, privileges, immunities, options, rights of
first refusal, and any other interests, unless any of the foregoing agreements has been previously
rejected or repudiated or is rejected or repudiated hereunder.
Modifications, amendments, supplements, and restatements to prepetition Executory Contracts
and Unexpired Leases that have been executed by the Debtors during the Chapter 11 Cases shall not
be deemed to alter the prepetition nature of the Executory Contract or Unexpired Lease, or the
validity, priority, or amount of any Claims that may arise in connection therewith.
2. Proofs of Claim Based on Executory Contracts or Unexpired Leases that Have Been
Assumed. Any and all Proofs of Claim based upon Executory Contracts or Unexpired Leases that
have been assumed in the Chapter 11 Cases, including hereunder, except Proofs of Claim asserting
Cures, pursuant to the order approving such assumption, including the Confirmation Order, shall be
deemed disallowed and expunged from the Claims Register as of
40
the Effective Date without any
further notice to or action, order, or approval of the Bankruptcy Court.
C. Indemnification Obligations
Each Indemnification Obligation shall be assumed by the applicable Debtor effective as of the
Effective Date, pursuant to sections 365 and 1123 of the Bankruptcy Code, to the extent such
Indemnification Obligation is executory, unless such Indemnification Obligation previously was
rejected by the Debtors pursuant to a Bankruptcy Court order or is the subject of a motion to
reject pending on the Effective Date. The Reorganized Debtors reserve the right to honor or
reaffirm Indemnification Obligations other than those terminated by a prior or subsequent
order of the Bankruptcy Court, whether or not executory, in which case such honoring or
reaffirmation shall be in complete satisfaction, discharge, and release of any Claim on account of
such Indemnification Obligation. Each Indemnification Obligation that is assumed, deemed assumed,
honored, or reaffirmed shall remain in full force and effect, shall not be modified, reduced,
discharged, impaired, or otherwise affected in any way, and shall survive Unimpaired and
unaffected, irrespective of when such obligation arose.
D. Insurance Policies
Each insurance policy shall be assumed by the applicable Debtor effective as of the Effective
Date, pursuant to sections 365 and 1123 of the Bankruptcy Code, to the extent such insurance policy
is executory, unless such insurance policy previously was rejected by the Debtors pursuant to a
Bankruptcy Court order, is the subject of a motion to reject pending on the Effective Date, or is
included in the schedule of Rejected Executory Contracts and Unexpired Leases contained in the
Plan Supplement.
E. Cure of Defaults for Assumed Executory Contracts and Unexpired Leases
With respect to each of the Executory Contracts or Unexpired Leases listed on the schedule of
Assumed Executory Contracts and Unexpired Leases, the Debtors shall have designated a proposed
Cure, and the assumption of such Executory Contract or Unexpired Lease shall be conditioned upon
the disposition of all issues with respect to Cure. Such Cure shall be satisfied by the Debtors or
their assignee, if any, by payment of the Cure in Cash on the Effective Date or as soon as
reasonably practicable thereafter, or on such other terms as may be ordered by the Bankruptcy Court
or agreed upon by the parties to the applicable Executory Contract or Unexpired Lease without any
further notice to or action, order, or approval of the Bankruptcy Court. Any provisions or terms
of the Executory Contracts or Unexpired Leases to be assumed pursuant to the Plan that are, or may
be, alleged to be in default, shall be satisfied solely by Cure, or by an agreed-upon waiver of
Cure.
Prior to the Confirmation Hearing, the Debtors shall file with the Bankruptcy Court and serve
upon counterparties to such Executory Contracts and Unexpired Leases a notice of the proposed
assumption that will (1) list the applicable Cure, if any, (2) describe the procedures for filing
objections to the proposed assumption or Cure, and (3) explain the process by which related
disputes will be resolved by the Bankruptcy Court. Except with respect to Executory Contracts and
Unexpired Leases in which the Debtors and the applicable counterparties have
41
stipulated in writing to payment of Cure, all requests for payment of Cure that differ from the amounts proposed by the
Debtors must be filed with the Claims and Solicitation Agent on or before the Cure Bar Date. Any
request for payment of Cure that is not timely filed shall be disallowed automatically and forever
barred, estopped, and enjoined from assertion and shall not be enforceable against any Reorganized
Debtor, without the need for any objection by the Reorganized Debtors or any further notice to or
action, order, or approval of the Bankruptcy Court, and any Cure shall be deemed fully satisfied,
released, and discharged upon payment by the Debtors of the amounts listed on the Debtors proposed
Cure schedule, notwithstanding anything included in the Schedules or in any Proof of Claim to the
contrary; provided, however, that nothing shall prevent the Reorganized Debtors
from paying any Cure despite the failure of
the relevant counterparty to file such request for payment of such Cure. The Reorganized
Debtors also may settle any Cure without any further notice to or action, order, or approval of the
Bankruptcy Court.
If the Debtors or Reorganized Debtors, as applicable, object to any Cure or any other matter
related to assumption, the Bankruptcy Court shall determine the Allowed amount of such Cure and any
related issues. If there is a dispute regarding such Cure, the ability of the Reorganized Debtors
or any assignee to provide adequate assurance of future performance within the meaning of section
365 of the Bankruptcy Code, or any other matter pertaining to assumption, then payment of Cure
shall occur as soon as reasonably practicable after entry of a Final Order resolving such dispute,
approving such assumption (and, if applicable, assignment), or as may be agreed upon by the Debtors
or Reorganized Debtors, as applicable, and the counterparty to the Executory Contract or Unexpired
Lease. Any counterparty to an Executory Contract and Unexpired Lease that fails to object timely
to the proposed assumption of any Executory Contract or Unexpired Lease and associated Cure will be
deemed to have consented to such assumption and Cure. The Debtors or Reorganized Debtors, as
applicable, reserve the right either to reject or nullify the assumption of any Executory Contract
or Unexpired Lease after a Final Order determining the Cure or any request for adequate assurance
of future performance required to assume such Executory Contract or Unexpired Lease is made.
Assumption of any Executory Contract or Unexpired Lease pursuant to the Plan or otherwise
shall result in the full release and satisfaction of any Cures, Claims or defaults, whether
monetary or nonmonetary, including defaults of provisions restricting the change in control or
ownership interest composition or other bankruptcy-related defaults, arising under any assumed
Executory Contract or Unexpired Lease at any time prior to the effective date of assumption.
F. Preexisting Obligations to the Debtors Under Executory Contracts and Unexpired Leases
Rejection of any Executory Contract or Unexpired Lease pursuant to the Plan or otherwise shall
not constitute a termination of pre-existing obligations owed to the Debtors under such contracts
or leases. In particular, notwithstanding any nonbankruptcy law to the contrary, the Reorganized
Debtors expressly reserve and do not waive any right to receive, or any continuing obligation of a
counterparty to provide, warranties or continued maintenance obligations on goods previously
purchased by the contracting Debtors or Reorganized Debtors, as applicable, from counterparties to
rejected or repudiated Executory Contracts.
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G. Claims Based on Rejection of Executory Contracts or Unexpired Leases
Unless otherwise provided by a Bankruptcy Court order, any Proofs of Claim asserting Claims
arising from the rejection of the Executory Contracts and Unexpired Leases pursuant to the Plan or
otherwise must be filed with the Claims and Solicitation Agent no later than 30 days after the
later of the Effective Date or the effective date of rejection. Any Proofs of Claim arising from
the rejection of the Executory Contracts or Unexpired Leases that are not timely filed shall be
disallowed automatically and forever barred, estopped, and enjoined from assertion and shall not be
enforceable against any Reorganized Debtor, without the need for any objection by the Reorganized
Debtors or any further notice to or action, order, or approval of the
Bankruptcy Court, and any Claim arising out of the rejection of the Executory Contract or
Unexpired Lease shall be deemed fully satisfied, released, and discharged, notwithstanding anything
in the Schedules or a Proof of Claim to the contrary. All Allowed Claims arising from the
rejection of the Executory Contracts and Unexpired Leases shall be classified as Other General
Unsecured Claims against the applicable Debtor counterparty thereto.
H. Contracts, Intercompany Contracts, and Leases Entered Into After the Petition Date
Contracts, Intercompany Contracts, and leases entered into after the Petition Date by any
Debtor, and any Executory Contracts and Unexpired Leases assumed by any Debtor, may be performed by
the applicable Reorganized Debtor in the ordinary course of business.
I. Reservation of Rights
Neither the exclusion nor inclusion of any contract or lease in the Plan Supplement, nor
anything contained in the Plan, shall constitute an admission by the Debtors that any such contract
or lease is in fact an Executory Contract or Unexpired Lease or that any Reorganized Debtor has any
liability thereunder. If there is a dispute regarding whether a contract or lease is or was
executory or unexpired at the time of assumption or rejection, the Debtors or Reorganized Debtors,
as applicable, shall have 45 days following entry of a Final Order resolving such dispute to alter
their treatment of such contract or lease.
ARTICLE VIII.
PROCEDURES FOR RESOLVING DISPUTED CLAIMS AND INTERESTS
A. Allowance of Claims and Interests
After the Effective Date, each Reorganized Debtor shall have and retain any and all rights and
defenses such Debtor had with respect to any Claim or Interest immediately prior to the Effective
Date, including the Causes of Action retained pursuant to ARTICLE IV.S, except with respect to any
Claim deemed Allowed under the Plan. Except as expressly provided in the Plan or in any order
entered in the Chapter 11 Cases prior to the Effective Date (including the Confirmation Order), no
Claim shall become an Allowed Claim unless and until such Claim is deemed Allowed or the Bankruptcy
Court has entered a Final Order, including the Confirmation Order, in the Chapter 11 Cases allowing
such Claim. All settled claims approved prior to the Effective Date pursuant to a Final Order of
the Bankruptcy Court, pursuant to Bankruptcy Rule 9019 or otherwise shall be binding on all
parties.
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B. Claims and Interests Administration Responsibilities
Except as otherwise specifically provided in the Plan, after the Effective Date, the
Reorganized Debtors shall have the sole authority (1) to file, withdraw, or litigate to judgment,
objections to Claims or Interests, (2) to settle or compromise any Disputed Claim without any
further notice to or action, order, or approval by the Bankruptcy Court, and (3) to administer and
adjust the Claims Register to reflect any such settlements or compromises without any further
notice to or action, order, or approval by the Bankruptcy Court.
C. Estimation of Claims and Interests
Before or after the Effective Date, the Debtors or Reorganized Debtors, as applicable, may
(but are not required to) at any time request that the Bankruptcy Court estimate any Disputed Claim
or disputed Interest that is contingent or unliquidated pursuant to section 502(c) of the
Bankruptcy Code for any reason, regardless of whether any party previously has objected to such
Claim or Interest or whether the Bankruptcy Court has ruled on any such objection, and the
Bankruptcy Court shall retain jurisdiction to estimate any such Claim or Interest, including during
the litigation of any objection to any Claim or Interest or during the appeal relating to such
objection. In the event that the Bankruptcy Court estimates any contingent or unliquidated Claim
or Interest, that estimated amount shall constitute a maximum limitation on such Claim or Interest
for all purposes under the Plan (including for purposes of distributions), and the relevant
Reorganized Debtor may elect to pursue any supplemental proceedings to object to any ultimate
distribution on such Claim or Interest.
D. Expungement or Adjustment to Paid, Satisfied, or Superseded Claims and Interests
Any Claim or Interest that has been paid, satisfied, or superseded, or any Claim or Interest
that has been amended or superseded, may be adjusted or expunged on the Claims Register by the
Reorganized Debtors without a claims objection having to be filed and without any further notice to
or action, order, or approval of the Bankruptcy Court.
E. No Interest
Unless otherwise specifically provided for in the Plan, required under applicable bankruptcy
law, or agreed to by the Debtors, the Confirmation Order, or a postpetition agreement in writing
between the Debtors and a holder of a Claim, postpetition interest shall not accrue or be paid on
Claims, and no holder of a Claim shall be entitled to interest accruing on or after the Petition
Date on any Claim or right. Additionally, and without limiting the foregoing, interest shall not
accrue or be paid on any Disputed Claim with respect to the period from the Effective Date to the
date a final distribution is made on account of such Disputed Claim, if and when such Disputed
Claim becomes an Allowed Claim.
F. Disallowance of Claims or Interests
EXCEPT AS OTHERWISE AGREED, ANY AND ALL PROOFS OF CLAIM FILED AFTER THE APPLICABLE DEADLINE
FOR FILING SUCH PROOFS OF CLAIM SHALL BE DEEMED DISALLOWED AND EXPUNGED AS OF THE EFFECTIVE DATE
WITHOUT ANY FURTHER NOTICE TO OR ACTION, ORDER,
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OR APPROVAL OF THE BANKRUPTCY COURT, AND HOLDERS OF
SUCH CLAIMS MAY NOT RECEIVE ANY DISTRIBUTIONS ON ACCOUNT OF SUCH CLAIMS, UNLESS SUCH LATE PROOF OF
CLAIM IS DEEMED TIMELY FILED BY A FINAL ORDER OF THE BANKRUPTCY COURT ON OR BEFORE THE LATER OF (1)
THE CONFIRMATION HEARING AND (2) 45 DAYS AFTER THE APPLICABLE DEADLINE FOR FILING SUCH PROOFS OF
CLAIM.
All Claims of any Entity from which property is sought by the Debtors under section 542, 543,
550, or 553 of the Bankruptcy Code or that the Debtors or the Reorganized Debtors allege is
a transferee of a transfer that is avoidable under section 522(f), 522(h), 544, 545, 547, 548,
549, or 724(a) of the Bankruptcy Code shall be disallowed if (1) the Entity, on the one hand, and
the Debtors or the Reorganized Debtors, on the other hand, agree or the Bankruptcy Court has
determined by Final Order that such Entity or transferee is liable to turn over any property or
monies under any of the aforementioned sections of the Bankruptcy Code and (2) such Entity or
transferee has failed to turn over such property by the date set forth in such agreement or Final
Order.
G. Amendments to Claims
On or after the Effective Date, except as otherwise provided herein, a Claim may not be filed
or amended without the prior authorization of the Bankruptcy Court or the Reorganized Debtors, and,
to the extent such prior authorization is not received, any such new or amended Claim filed shall
be deemed disallowed in full and expunged without any further notice to or action, order, or
approval of the Bankruptcy Court.
H. No Distributions Pending Allowance
If an objection to a Claim or portion thereof is filed prior to the Effective Date, no payment
or distribution provided under the Plan shall be made on account of such Claim or portion thereof,
as applicable, unless and until such Disputed Claim becomes an Allowed Claim.
I. Distributions After Allowance
To the extent that a Disputed Claim ultimately becomes an Allowed Claim, distributions, if
any, shall be made to the holder of such Allowed Claim in accordance with the provisions of the
Plan. As soon as practicable after the date that the order or judgment of the Bankruptcy Court
allowing any Disputed Claim becomes a Final Order, the Distribution Agent shall provide to the
holder of such Claim the distribution, if any, to which such holder is entitled under the Plan as
of the Effective Date, without any interest to be paid on account of such Claim unless required
under applicable bankruptcy law.
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ARTICLE IX.
PROVISIONS GOVERNING DISTRIBUTIONS
A. Distributions on Account of Claims Allowed as of the Effective Date
1. Delivery of Distributions in General. Except as otherwise provided in the Plan, a
Final Order, or as otherwise agreed to by the relevant parties on the Distribution Date, the
Distribution Agent shall make initial distributions under the Plan on account of Claims Allowed on
or before the Effective Date, subject to the Reorganized Debtors right to object to Claims;
provided, however, that (a) Allowed Administrative Claims with respect to
liabilities incurred by the Debtors in the ordinary course of business during the Chapter 11 Cases
or assumed by the Debtors prior to the Effective Date shall be paid or performed in the ordinary
course of business in accordance with the terms and conditions of any controlling agreements,
course of dealing, course of business, or industry practice, and (b) Allowed Priority Tax Claims
and Allowed Secured Tax Claims shall be paid in full in Cash on the Distribution Date or in
installment payments over a period not more than five years after the Petition Date pursuant to
section 1129(a)(9)(C) of the Bankruptcy Code. To the extent any Allowed Priority Tax Claim or
Allowed Secured Tax Claim is not due and owing on the Effective Date, such Claim shall be paid in
full in Cash in accordance with the terms of any agreement between the Debtors and the holder of
such Claim, or as may be due and payable under applicable non-bankruptcy law or in the ordinary
course of business.
2. Delivery of Distributions on account of DIP Facility Claims. The DIP Facility
Administrative Agent shall be deemed to be the holder of all DIP Facility Claims, as applicable,
for purposes of distributions to be made hereunder, and the Distribution Agent shall make all
distributions on account of such DIP Facility Claims to or on behalf of the DIP Facility
Administrative Agent. The DIP Facility Administrative Agent shall hold or direct such
distributions for the benefit of the holders of Allowed DIP Facility Claims, as applicable. The
DIP Facility Administrative Agent shall arrange to deliver such distributions to or on behalf of
such holders of Allowed DIP Facility Claims; provided, however, the DIP Facility
Administrative Agent shall retain all rights as administrative agent under the DIP Facility Credit
Agreement in connection with delivery of distributions to DIP Facility Lenders; and
provided further, however, that the Debtors obligations to make
distributions in accordance with ARTICLE II.C shall be deemed satisfied upon delivery of
distributions to the DIP Facility Administrative Agent.
3. Delivery of Distributions on account of ABL Claims. The ABL Facility
Administrative Agent shall be deemed to be the holder of the ABL Claim, as applicable, for purposes
of distributions to be made hereunder, and the Distribution Agent shall make all distributions on
account of such Allowed ABL Claim to or on behalf of the ABL Facility Administrative Agent. The
ABL Facility Administrative Agent shall hold or direct such distributions for the benefit of the
holder of the Allowed ABL Claim, as applicable. The ABL Facility Administrative Agent shall
arrange to deliver such distributions to or on behalf of the holder of the Allowed ABL Claim;
provided, however, the ABL Facility Administrative Agent shall retain all rights as
administrative agent under the ABL Facility Credit Agreement in connection with delivery of
distributions to the ABL Lender; and provided further, however, that
46
the Debtors obligations to make distributions in accordance with ARTICLE III.C.1.b shall be deemed
satisfied upon delivery of distributions to the ABL Facility Administrative Agent.
4. Delivery of Distributions on account of the Term Loan Facility Claims. The Term
Loan Facility Administrative Agent shall be deemed to be the holder of the Term Loan Facility
Claims, as applicable, for purposes of distributions to be made hereunder, and the Distribution
Agent shall make all distributions on account of such Allowed Term Loan Facility Claims to or on
behalf of the Term Loan Facility Administrative Agent. The Term Loan Facility Administrative Agent
shall hold or direct such distributions for the benefit of the holders of the Allowed Term Loan
Facility Claims, as applicable. The Term Loan Facility Administrative Agent shall arrange to
deliver such distributions to or on behalf of the holders of the Allowed Term Loan Facility Claims;
provided, however, the Term Loan Facility Administrative Agent shall retain all
rights as administrative agent under the Term Loan Agreement in connection with delivery of
distributions to the Term Loan Lenders; and provided further, however, that
the Debtors obligations to make distributions in accordance with ARTICLE III.C.5.c shall be deemed
satisfied upon delivery of distributions to the Term Loan Facility Administrative Agent.
5. Delivery of Distributions on account of the 7.00% Senior Notes Claims. The Notes
Trustee shall be deemed to be the holder of the 7.00% Senior Notes Claims, as applicable, for
purposes of distributions to be made hereunder, and the Distribution Agent shall make all
distributions on account of such 7.00% Senior Notes Claims to or on behalf of the Notes Trustee.
The Notes Trustee shall hold or direct such distributions for the benefit of the holders of the
7.00% Senior Notes Claims, as applicable. The Notes Trustee shall arrange to deliver such
distributions to or on behalf of the holders of the 7.00% Senior Notes Claims; provided,
however, the Notes Trustee shall retain all rights as indenture trustee under the Notes
Indentures
in connection with delivery of distributions to the holders of the 7.00% Senior Notes; and
provided further, however, that the Debtors obligations to make
distributions in accordance with ARTICLE III.C.6.c shall be deemed satisfied upon delivery of
distributions to the Notes Trustee.
6. Delivery of Distributions on account of the 8.25% Senior Notes Claims. The Notes
Trustee shall be deemed to be the holder of the 8.25% Senior Notes Claims, as applicable, for
purposes of distributions to be made hereunder, and the Distribution Agent shall make all
distributions on account of such 8.25% Senior Notes Claims to or on behalf of the Notes Trustee.
The Notes Trustee shall hold or direct such distributions for the benefit of the holders of the
8.25% Senior Notes Claims, as applicable. The Notes Trustee shall arrange to deliver such
distributions to or on behalf of the holders of the 8.25% Senior Notes Claims; provided,
however, the Notes Trustee shall retain all rights as indenture trustee under the Notes
Indentures in connection with delivery of distributions to the holders of the 8.25% Senior Notes;
and provided further, however, that the Debtors obligations to make
distributions in accordance with ARTICLE III.C.6.c shall be deemed satisfied upon delivery of
distributions to the Notes Trustee.
7. Delivery of Distributions on account of the 12.25% Senior Notes Claims. The Notes
Trustee shall be deemed to be the holder of the 12.25% Senior Notes Claims, as applicable, for
purposes of distributions to be made hereunder, and the Distribution Agent shall make all
distributions on account of such 12.25% Senior Notes Claims to or on behalf of the Notes Trustee.
The Notes Trustee shall hold or direct such distributions for the benefit of the holders of the
12.25% Senior Notes Claims, as applicable. The Notes Trustee shall arrange to
47
deliver such distributions to or on behalf of the holders of the 12.25% Senior Notes Claims; provided,
however, the Notes Trustee shall retain all rights as indenture trustee under the Notes
Indentures in connection with delivery of distributions to the holders of the 12.25% Senior Notes;
and provided further, however, that the Debtors obligations to make
distributions in accordance with ARTICLE III.C.7.c shall be deemed satisfied upon delivery of
distributions to the Notes Trustee.
8. Notes Trustee as Claim Holder. Consistent with Bankruptcy Rule 3003(c), the
Reorganized Debtors shall recognize a Proof of Claim filed by the Notes Trustee in respect of the
7.00% Senior Notes Claims, 8.25% Senior Notes Claims, and 12.25% Senior Notes Claims. Accordingly,
any Claim, proof of which is by the registered or beneficial holder of a Claim, may be disallowed
as duplicative of a Claim of the Notes Trustee, without need for any further action or Bankruptcy
Court order.
9. Withholding of shares of New Visteon Common Stock. Notwithstanding anything in the
Plan to the contrary, Reorganized Visteon shall hold any shares of New Visteon Common Stock to
which a Contingent Holder would otherwise be entitled if it were not a Contingent Holder until such
time that such holder provides the Distribution Agent written certification that such holder is not
in violation of any laws or regulations of any Governmental Unit. Such Contingent Holder shall not
be a shareholder of Reorganized Visteon and shall have no voting rights or other rights of a
shareholder of Reorganized Visteon with respect to such withheld shares. As soon as reasonably
practicable upon receipt by the Distribution Agent of a Contingent Holders written certification
that such holder is in compliance with the laws and regulations of the applicable Governmental
Units, but not earlier than the Effective Date,
Reorganized Visteon shall release such withheld shares of New Visteon Common Stock for
distribution to the Contingent Holder. To the extent that a Contingent Holder fails to provide the
Distribution Agent with such certification within 180 days of the Effective Date, Reorganized
Visteon shall be permitted as agent for the Contingent Holder to market for sale that portion of
the Allowed Claim underlying such Contingent Holders withheld shares of New Visteon Common Stock.
The proceeds of any such sale (minus any fees or expenses incurred by Reorganized Visteon in
connection with such sale) shall be distributed to such Contingent Holder as soon as such sale can
be facilitated, subject to applicable regulatory approval, if any. Under the Rights Offering Sub
Plan, under no circumstance shall a Contingent Holder have a claim for the return of any funds paid
in connection with the purchase of Rights Offering Shares, or, if applicable, be released from its
obligations under the Equity Commitment Agreement, unless otherwise provided for therein, solely on
account of such holder being a Contingent Holder.
B. Distributions on Account of Claims Allowed After the Effective Date
1. Payments and Distributions on Disputed Claims. Except as otherwise provided in the
Plan, a Final Order, or as agreed to by the relevant parties, distributions under the Plan on
account of Disputed Claims that become Allowed after the Effective Date shall be made on the
Periodic Distribution Date that is at least 30 days after the Disputed Claim becomes an Allowed
Claim; provided, however, that (a) Disputed Claims that are Administrative Claims
with respect to liabilities incurred by the Debtors in the ordinary course of business during the
Chapter 11 Cases or assumed by the Debtors on or before the Effective Date that become Allowed
after the
48
Effective Date shall be paid or performed in the ordinary course of business in
accordance with the terms and conditions of any controlling agreements, course of dealing, course
of business, or industry practice and (b) Disputed Claims that are Priority Tax Claims or Secured
Tax Claims that become Allowed Priority Tax Claims or Allowed Secured Tax Claims after the
Effective Date shall be paid in full in Cash on the Periodic Distribution Date that is at least 30
days after the Disputed Claim becomes an Allowed Claim or over a five-year period as provided in
section 1129(a)(9)(C) of the Bankruptcy Code with annual interest provided by applicable
non-bankruptcy law.
2. Special Rules for Distributions to Holders of Disputed Claims. Notwithstanding any
provision otherwise in the Plan and except as otherwise agreed by the relevant parties (a) no
partial payments and no partial distributions shall be made with respect to a Disputed Claim until
all such disputes in connection with such Disputed Claim have been resolved by settlement or Final
Order and (b) any Entity that holds both an Allowed Claim and a Disputed Claim shall not receive
any distribution on the Allowed Claim unless and until all objections to the Disputed Claim have
been resolved by settlement or Final Order or the Claims have been Allowed or expunged. All
distributions made pursuant to the Plan on account of a Disputed Claim that is deemed an Allowed
Claim by the Bankruptcy Court shall be made together with any dividends, payments, or other
distributions made on account of, as well as any obligations arising from, the distributed property
as if such Allowed Claim had been an Allowed Claim on the dates distributions were previously made
to holders of Allowed Claims included in the applicable
Class; provided, however, that no interest shall be paid on account to such
Allowed Claims unless required under applicable bankruptcy law.
C. Delivery of Distributions
1. Record Date for Distributions. On the Distribution Record Date, the Claims
Register shall be closed and the Distribution Agent shall be authorized and entitled to recognize
only those record holders listed on the Claims Register as of the close of business on the
Distribution Record Date. Notwithstanding the foregoing, if a Claim or Interest, other than one
based on a publicly traded Certificate is transferred less than 20 days before the Distribution
Record Date, the Distribution Agent shall make distributions to the transferee only to the extent
practical and in any event only if the relevant transfer form contains an unconditional and
explicit certification and waiver of any objection to the transfer by the transferor.
2. Distribution Process. The Distribution Agent shall make all distributions required
under the Plan, except that distributions to holders of Allowed Claims governed by a separate
agreement and administered by a Servicer shall be deposited with the appropriate Servicer, at which
time such distributions shall be deemed complete, and the Servicer shall deliver such distributions
in accordance with the Plan and the terms of the governing agreement. Except as otherwise provided
in the Plan, and notwithstanding any authority to the contrary, distributions to holders of Allowed
Claims shall be made to holders of record as of the Distribution Record Date by the Distribution
Agent or a Servicer, as appropriate: (a) to the signatory set forth on any of the Proofs of Claim
filed by such holder or other representative identified therein (or at the last known addresses of
such holder if no Proof of Claim is filed or if the Debtors have been notified in writing of a
change of address); (b) at the addresses set forth in any written notices of address changes
delivered to the Distribution Agent after the date of any related Proof of Claim;
49
(c) in accordance
with Federal Rule of Civil Procedure 4, as modified and made applicable by Bankruptcy Rule 7004 if
no Proof of Claim has been filed and the Distribution Agent has not received a written notice of a
change of address; (d) at the addresses reflected in the Schedules if no Proof of Claim has been
filed and the Distribution Agent has not received a written notice of a change of address; or (e)
on any counsel that has appeared in the Chapter 11 Cases on the holders behalf. The Debtors, the
Reorganized Debtors, and the Distribution Agent, as applicable, shall not incur any liability
whatsoever on account of any distributions under the Plan.
3. Accrual of Dividends and Other Rights. For purposes of determining the accrual of
dividends or other rights after the Effective Date, New Visteon Common Stock shall be deemed
distributed as of the Effective Date regardless of the date on which it is actually issued, dated,
authenticated, or distributed; provided however, the Reorganized Debtors shall not
pay any such dividends or distribute such other rights, if any, until after distributions of New
Visteon Common Stock actually take place.
4. Compliance Matters. In connection with the Plan, to the extent applicable, the
Reorganized Debtors and the Distribution Agent shall comply with all tax withholding and reporting
requirements imposed on them by any Governmental Unit, and all distributions pursuant to the Plan
shall be subject to such withholding and reporting requirements.
Notwithstanding any provision in the Plan to the contrary, the Reorganized Debtors and the
Distribution Agent shall be authorized to take all actions necessary or appropriate to comply with
such withholding and reporting requirements, including liquidating a portion of the distribution to
be made under the Plan to generate sufficient funds to pay applicable withholding taxes,
withholding distributions pending receipt of information necessary to facilitate such
distributions, or establishing any other mechanisms they believe are reasonable and appropriate.
The Reorganized Debtors reserve the right to allocate all distributions made under the Plan in
compliance with all applicable wage garnishments, alimony, child support, and other spousal awards,
liens, and encumbrances.
5. Foreign Currency Exchange Rate. Except as otherwise provided in the Plan or a
Bankruptcy Court order, as of the Effective Date, any Claim asserted in currency other than U.S.
dollars shall be automatically deemed converted to the equivalent U.S. dollar value using the
exchange rate as of Thursday, May 28, 2009 as quoted at 4:00 p.m. (EDT), mid-range spot rate of
exchange for the applicable currency as published in The Wall Street Journal, National Edition, on
Friday, May 29, 2009.
6. Fractional, De Minimis, Undeliverable, and Unclaimed Distributions.
a. Fractional Distributions. Notwithstanding any other provision of the Plan
to the contrary, payments of fractions of shares of New Visteon Common Stock shall not be
made and shall be deemed to be zero, and the Distribution Agent shall not be required to
make distributions or payments of fractions of dollars. Whenever any payment of Cash of a
fraction of a dollar pursuant to the Plan would otherwise be required, the actual payment
shall reflect a rounding of such fraction to the nearest whole dollar (up or down), with
half dollars or less being rounded down.
50
b. De Minimis Distributions. Neither the Distribution Agent nor any Servicer
shall have any obligation to make a distribution on account of an Allowed Claim if (i) the
aggregate amount of all distributions authorized to be made on the Periodic Distribution
Date in question is or has an economic value less than $250,000, or (ii) the amount to be
distributed to the specific holder of an Allowed Claim on the particular Periodic
Distribution Date does not constitute a final distribution to such holder.
c. Undeliverable Distributions. If any distribution to a holder of an Allowed
Claim or Interest is returned to a Distribution Agent as undeliverable, no further
distributions shall be made to such holder unless and until such Distribution Agent is
notified in writing of such holders then-current address, at which time all currently due
missed distributions shall be made to such holder on the next Periodic Distribution Date.
Undeliverable distributions shall remain in the possession of the Reorganized Debtors until
such time as a distribution becomes deliverable, or such distribution reverts to the
Reorganized Debtors or is cancelled pursuant to ARTICLE IX.C.6.d, and shall not be
supplemented with any interest, dividends, or other accruals of any kind.
d. Reversion. Any distribution under the Plan that is an Unclaimed
Distribution for a period of six months after distribution shall be deemed unclaimed
property under section 347(b) of the Bankruptcy Code and such Unclaimed Distribution
shall revest in the Reorganized Debtors and, to the extent such Unclaimed Distribution is
New Visteon Common Stock, shall be deemed cancelled. Upon such revesting, the Claim of any
holder or its successors with respect to such property shall be cancelled, discharged, and
forever barred notwithstanding any applicable federal or state escheat, abandoned, or
unclaimed property laws to the contrary. The provisions of the Plan regarding undeliverable
distributions and Unclaimed Distributions shall apply with equal force to distributions that
are issued by the Debtors, the Reorganized Debtors, or the Distribution Agent made pursuant
to any indenture or Certificate (but only with respect to the initial distribution by the
Servicer to holders that are entitled to be recognized under the relevant indenture or
Certificate and not with respect to Entities to whom those recognized holders distribute),
notwithstanding any provision in such indenture or Certificate to the contrary and
notwithstanding any otherwise applicable federal or state escheat, abandoned, or unclaimed
property law.
7. Surrender of Cancelled Instruments or Securities. On the Effective Date or as soon
as reasonably practicable thereafter, each holder of a Certificate, except holders of Class I
Claims, shall surrender such Certificate to the Distribution Agent or a Servicer (to the extent the
relevant Claim is governed by an agreement and administered by a Servicer). Such Certificate shall
be cancelled solely with respect to the Debtors, and such cancellation shall not alter the
obligations or rights of any non-Debtor third parties vis-à-vis one another with respect to such
Certificate. No distribution of property pursuant to the Plan shall be made to or on behalf of any
such holder unless and until such Certificate is received by the Distribution Agent or the Servicer
or the unavailability of such Certificate is reasonably established to the satisfaction of the
Distribution Agent or the Servicer pursuant to the provisions of ARTICLE IX.C.8. Any holder who
fails to surrender or cause to be surrendered such Certificate or fails to execute and deliver an
affidavit of loss and indemnity acceptable to the Distribution Agent or the Servicer prior to the
first anniversary of the Effective Date, shall have its Claim discharged with no further action,
51
be forever barred from asserting any such Claim against the relevant Reorganized Debtor or its
property, be deemed to have forfeited all rights, and Claims with respect to such Certificate, and
not participate in any distribution under the Plan; furthermore, all property with respect to such
forfeited distributions, including any dividends or interest attributable thereto, shall revert to
the Reorganized Debtors, notwithstanding any federal or state escheat, abandoned, or unclaimed
property law to the contrary. Notwithstanding the foregoing paragraph, this ARTICLE IX.C.7 shall
not apply to any Claims reinstated pursuant to the terms of the Plan.
8. Lost, Stolen, Mutilated, or Destroyed Debt Securities. Any holder of Allowed
Claims evidenced by a Certificate that has been lost, stolen, mutilated, or destroyed shall, in
lieu of surrendering such Certificate, deliver to the Distribution Agent or Servicer, if
applicable, an affidavit of loss acceptable to the Distribution Agent or Servicer setting forth the
unavailability of the Certificate, and such additional indemnity as may be required reasonably by
the Distribution Agent or Servicer to hold the Distribution Agent or Servicer harmless from any
damages, liabilities, or costs incurred in treating such holder as a holder of an Allowed Claim or
Interest. Upon compliance with this procedure by a holder of an Allowed Claim evidenced by
such a lost, stolen, mutilated, or destroyed Certificate, such holder shall, for all purposes
pursuant to the Plan, be deemed to have surrendered such Certificate.
D. Claims Paid or Payable by Third Parties
1. Claims Paid by Third Parties. The Claims and Solicitation Agent shall reduce in
full a Claim, and such Claim shall be disallowed without a Claims objection having to be filed and
without any further notice to or action, order, or approval of the Bankruptcy Court, to the extent
that the holder of such Claim receives payment in full on account of such Claim from a party that
is not a Debtor or Reorganized Debtor. To the extent a holder of a Claim receives a distribution
on account of such Claim and receives payment from a party that is not a Debtor or a Reorganized
Debtor on account of such Claim, such holder shall, within two weeks of receipt thereof, repay or
return the distribution to the applicable Reorganized Debtor, to the extent the holders total
recovery on account of such Claim from the third party and under the Plan exceeds the amount of
such Claim as of the date of any such distribution under the Plan.
2. Claims Payable by Insurance Carriers. No distributions under the Plan shall be
made on account of an Allowed Claim that is payable pursuant to one of the Debtors insurance
policies until the holder of such Allowed Claim has exhausted all remedies with respect to such
insurance policy. To the extent that one or more of the Debtors insurers agrees to satisfy in
full a Claim (if and to the extent adjudicated by a court of competent jurisdiction), then
immediately upon such insurers agreement, such Claim may be expunged to the extent of any agreed
upon satisfaction on the Claims Register by the Claims and Solicitation Agent without a Claims
objection having to be filed and without any further notice to or action, order, or approval of the
Bankruptcy Court.
3. Applicability of Insurance Policies. Except as otherwise provided in the Plan,
distributions to holders of Allowed Claims shall be in accordance with the provisions of any
applicable insurance policy. Nothing contained in the Plan shall constitute or be deemed a waiver
of any Cause of Action that the Debtors or any Entity may hold against any other Entity, including
insurers under any policies of insurance, nor shall anything contained herein constitute
52
or be deemed a waiver by such insurers of any defenses, including coverage defenses, held by such
insurers.
E. Setoffs
Except as otherwise expressly provided for in the Plan or in an Accommodation Agreement, each
Reorganized Debtor pursuant to the Bankruptcy Code (including section 553 of the Bankruptcy Code),
applicable non-bankruptcy law, or as may be agreed to by the holder of a Claim, may set off against
any Allowed Claim and the distributions to be made pursuant to the Plan on account of such Allowed
Claim (before any distribution is made on account of such Allowed Claim), any Claims, rights, and
Causes of Action of any nature that such Debtor or Reorganized Debtor, as applicable, may hold
against the holder of such Allowed Claim, to the extent such Claims, rights, or Causes of Action
against such holder have not been otherwise compromised or settled on or prior to the Effective
Date (whether pursuant to the Plan or otherwise); provided, however, that neither
the failure to effect such a setoff nor the allowance of
any Claim pursuant to the Plan shall constitute a waiver or release by such Reorganized Debtor
of any such Claims, rights, and Causes of Action that such Reorganized Debtor may possess against
such holder. In no event shall any holder of Claims be entitled to set off any Claim against any
Claim, right, or Cause of Action of the Debtor or Reorganized Debtor, as applicable, unless such
holder has filed a motion with the Bankruptcy Court requesting the authority to perform such setoff
on or before the Confirmation Date, and notwithstanding any indication in any Proof of Claim or
otherwise that such holder asserts, has, or intends to preserve any right of setoff pursuant to
section 553 or otherwise.
F. Allocation Between Principal and Accrued Interest
Except as otherwise provided in the Plan, the aggregate consideration paid to holders with
respect to their Allowed Claims shall be treated pursuant to the Plan as allocated first to the
principal amount of such Allowed Claims (to the extent thereof) and, thereafter, to the interest,
if any, accrued through the Effective Date.
ARTICLE X.
EFFECT OF CONFIRMATION OF THE PLAN
A. Discharge of Claims and Termination of Interests
Except with respect to Claims, if any, held by Investors arising under the Equity Commitment
Agreement or as otherwise provided in the Plan and effective as of the Effective Date: (1) the
rights afforded in the Plan and the treatment of all Claims and Interests shall be in exchange for
and in complete satisfaction, discharge, and release of all Claims and Interests of any nature
whatsoever, including any interest accrued on such Claims from and after the Petition Date, against
the Debtors or any of their assets, property, or Estates; (2) the Plan shall bind all holders of
Claims and Interests, notwithstanding whether any such holders failed to vote to accept or reject
the Plan or voted to reject the Plan; (3) all Claims and Interests shall be satisfied, discharged,
and released in full, and the Debtors liability with respect thereto shall be extinguished
53
completely, including any liability of the kind specified under section 502(g) of the Bankruptcy
Code; and (4) all Entities shall be precluded from asserting against the Debtors, the Debtors
Estates, the Reorganized Debtors, their successors and assigns, and their assets and properties any
other Claims or Interests based upon any documents, instruments, or any act or omission,
transaction, or other activity of any kind or nature that occurred prior to the Effective Date.
B. Subordinated Claims
The allowance, classification, and treatment of all Allowed Claims and Interests and the
respective distributions and treatments under the Plan take into account and conform to the
relative priority and rights of the Claims and Interests in each Class in connection with any
contractual, legal, and equitable subordination rights relating thereto, whether arising under
general principles of equitable subordination, section 510 of the Bankruptcy Code, or otherwise.
Pursuant to section 510 of the Bankruptcy Code, the Reorganized Debtors reserve the right to
re-classify any Allowed Claim or Interest in accordance with any contractual, legal, or equitable
subordination relating thereto.
C. Compromise and Settlement of Claims and Controversies
Pursuant to section 363 of the Bankruptcy Code and Bankruptcy Rule 9019 and in consideration
for the distributions and other benefits provided pursuant to the Plan or any distribution to be
made on account of an Allowed Claim or Interest, the provisions of the Plan shall constitute a good
faith compromise of all Claims, Interests, and controversies relating to the contractual, legal,
and subordination rights that a holder of a Claim or Interest may have with respect to any Allowed
Claim or Interest. The entry of the Confirmation Order shall constitute the Bankruptcy Courts
approval of the compromise or settlement of all such Claims, Interests, and controversies, as well
as a finding by the Bankruptcy Court that any such compromise or settlement is in the best
interests of the Debtors, their Estates, and holders of Claims and Interests and is fair,
equitable, and reasonable. In accordance with the provisions of the Plan, pursuant to section 363
of the Bankruptcy Code and Bankruptcy Rule 9019(a), without any further notice to or action, order,
or approval of the Bankruptcy Court, after the Effective Date, the Reorganized Debtors may
compromise and settle Claims against them and Causes of Action against other Entities.
D. Releases by the Debtors
Pursuant to section 1123(b) of the Bankruptcy Code, and except as otherwise specifically
provided in the Plan, for good and valuable consideration, on and after the Effective Date, the
Released Parties are deemed released and discharged by the Debtors, the Reorganized Debtors, and
their Estates from any and all Claims, obligations, rights, suits, damages, Causes of Action,
remedies, and liabilities whatsoever, including any derivative Claims, asserted on behalf of the
Debtors, whether known or unknown, foreseen or unforeseen, existing or hereinafter arising, in law,
equity, or otherwise, that the Debtors, the Reorganized Debtors, their Estates, or their Affiliates
would have been legally entitled to assert in their own right (whether individually or
collectively) or on behalf of the holder of any Claim or Interest or other Entity, based on or
relating to, or in any manner arising
54
from, in whole or in part, the Debtors, the Chapter 11 Cases,
the purchase, sale, or rescission of the purchase or sale of any security of the Debtors or the
Reorganized Debtors, the subject matter of, or the transactions or events giving rise to, any Claim
or Interest that is treated in the Plan, the business or contractual arrangements between any
Debtor and any Released Party, the restructuring of Claims and Interests prior to or in the Chapter
11 Cases, the negotiation, formulation, or preparation of the Plan and Disclosure Statement, or
related agreements, instruments, or other documents, upon any other act or omission, transaction,
agreement, event, or other occurrence taking place on or before the Effective Date of the Plan,
other than Claims or liabilities arising out of or relating to any act or omission of a Released
Party that constitutes willful misconduct or gross negligence, or as otherwise provided in the
Plan.
E. Releases by Holders of Claims and Interests
As of the Effective Date, the Releasing Parties are deemed to have released and discharged the
Debtors, the Reorganized Debtors, their Estates, and the Released Parties from any and all Claims,
Interests, obligations, rights, suits, damages, Causes of Action, remedies, and liabilities
whatsoever, including any derivative Claims, asserted on behalf of the Debtors, whether known or
unknown, foreseen or unforeseen, existing or hereinafter arising, in law, equity, or otherwise,
that such Entity would have been legally entitled to assert (whether individually or collectively),
based on or relating to, or in any manner arising from, in whole or in part, the Debtors, the
Debtors restructuring, the Chapter 11 Cases, the purchase, sale, or rescission of the purchase or
sale of any security of the Debtors or the Reorganized Debtors, the subject matter of, or the
transactions or events giving rise to, any Claim or Interest that is treated in the Plan, the
business or contractual arrangements between any Debtor and any Released Party, the restructuring
of Claims and Interests prior to or in the Chapter 11 Cases, the negotiation, formulation, or
preparation of the Plan, the Disclosure Statement, the Plan Supplement, the Equity Commitment
Agreement or related agreements, instruments, or other documents, upon any other act or omission,
transaction, agreement, event, or other occurrence taking place on or before the Effective Date of
the Plan, other than Claims or liabilities arising out of or relating to any act or omission of a
Released Party that constitutes willful misconduct or gross negligence. Notwithstanding anything
to the contrary in the foregoing, the releases set forth above do not release any (i)
post-Effective Date obligations of any party under the Plan or any document, instrument, or
agreement (including those set forth in the Plan Supplement) executed to implement the Plan or (ii)
Claims held by Investors arising under the Equity Commitment Agreement. For the avoidance of
doubt, nothing in this paragraph shall in any way affect the operation of ARTICLE X.A of the Plan,
pursuant to section 1141(d) of the Bankruptcy Code.
F. Exculpation
The Exculpated Parties shall neither have, nor incur any liability to any Entity for any
Exculpated Claim; provided, however, that the foregoing exculpation shall have no
effect on the liability of (1) any Entity that results from any such act or omission that is
determined in a Final Order to have constituted gross negligence or willful misconduct, or
55
(2) any Debtor or Reorganized Debtor not exculpated pursuant to the Equity Commitment Agreement in
connection with Claims arising thereunder.
The Exculpated Parties have, and upon Confirmation shall be deemed to have, participated in
good faith and in compliance with the applicable provisions of the Bankruptcy Code with regard to
the distributions of the New Visteon Common Stock pursuant to the Plan and, therefore, are not and
shall not be liable at any time for the violations of any applicable, law, rule, or regulation
governing the solicitation of acceptances or rejections of the Plan or such distributions made
pursuant to the Plan.
G. Injunction
From and after the Effective Date, all Entities are permanently enjoined from commencing or
continuing in any manner, any suit, action, or other proceeding, on account of or respecting any
Claim, demand, Lien, liability, obligation, debt, right, Cause of Action, Interest, or remedy
released or to be released, exculpated, or to be exculpated pursuant to the Plan or the
Confirmation Order.
H. Protection Against Discriminatory Treatment
Consistent with section 525 of the Bankruptcy Code and paragraph 2 of Article VI of the United
States Constitution, no Governmental Unit shall discriminate against the Reorganized Debtors or
deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar
grant to, condition such a grant to, discriminate with respect to such a grant against, the
Reorganized Debtors, or another Entity with whom such Reorganized Debtors have been associated,
solely because one of the Debtors has been a debtor under chapter 11, has been insolvent before the
commencement of the Chapter 11 Cases (or during the Chapter 11 Cases but before the Debtor is
granted or denied a discharge), or has not paid a debt that is dischargeable in the Chapter 11
Cases.
I. Indemnification
Except as otherwise provided in the Plan, all indemnification provisions currently in place
(whether in the by-laws, certificates of incorporation, articles of limited partnership, board
resolutions, contracts, or otherwise) for the directors, officers, employees, attorneys, other
professionals, and agents of the Debtors that served in such capacity from and after the Petition
Date and such directors and officers respective affiliates, shall be reinstated (or assumed, as
the case may be), and shall survive effectiveness of the Plan.
J. Recoupment
In no event shall any holder of Claims or Interests be entitled to recoup any Claim or
Interest against any Claim, right, or Cause of Action of the Debtors or the Reorganized Debtors, as
applicable, unless such holder actually has performed such recoupment and provided notice thereof
in writing to the Debtors on or before the Confirmation Date, notwithstanding any indication in any
Proof of Claim or Interest or otherwise that such holder asserts, has, or intends to preserve any
right of recoupment.
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K. Release of Liens
Except as otherwise provided in the Plan or in any contract, instrument, release, or other
agreement or document created pursuant to the Plan, on the Effective Date, all mortgages, deeds of
trust, Liens, pledges, or other security interests against any property of the Estates shall be
fully released, and discharged, and all of the right, title, and interest of any holder of such
mortgages, deeds of trust, Liens, pledges, or other security interests shall revert to the
Reorganized Debtor and its successors and assigns.
L. Reimbursement or Contribution
If the Bankruptcy Court disallows a Claim for reimbursement or contribution of an Entity
pursuant to section 502(e)(1)(B) of the Bankruptcy Code, then to the extent that such Claim is
contingent as of the Effective Date, such Claim shall be forever disallowed notwithstanding section
502(j) of the Bankruptcy Code, unless prior to the Effective Date (1) such Claim has been
adjudicated as noncontingent or (2) the relevant holder of a Claim has filed a noncontingent Proof
of Claim on account of such Claim and a Final Order has been entered determining such Claim as no
longer contingent.
ARTICLE XI.
CONDITIONS PRECEDENT TO CONSUMMATION OF THE PLAN
A. Conditions Precedent to the Effective Date
It shall be a condition to the Effective Date that the following conditions shall have been
satisfied or waived pursuant to ARTICLE XI.B hereof:
1. the Confirmation Order shall have become a Final Order in form and substance reasonably
acceptable to the Debtors and the Requisite Parties;
2. all guaranties (including by non-Debtors) in connection with obligations under the Term
Loan Facility, and all other obligations being discharged under the Plan, shall have been released
or otherwise addressed in a manner reasonably acceptable to the Debtors and the Requisite Parties,
and all Liens or pledges securing obligations under the Term Loan Facility (or any guarantee
thereof) shall have been released or otherwise addressed in a manner reasonably acceptable to the
Debtors and the Requisite Parties;
3. all actions, documents, Certificates, and agreements necessary to implement the Plan, shall
have (a) all conditions precedent to such documents and agreements satisfied or waived pursuant to
the terms of such documents or agreements, (b) been tendered for delivery, (c) to the extent
required, been filed with and approved by any applicable Governmental Units in accordance with
applicable laws, and (d) been effected or executed;
4. all matters relating to Ford Motor Company have been resolved to the reasonable
satisfaction of the Requisite Parties, provided, upon resolution of such matters, Ford
Motor Company shall be released from liability in connection therewith pursuant to Bankruptcy Rule
9019;
57
5. under the Rights Offering Sub Plan, all conditions to the effectiveness of the Equity
Commitment Agreement shall have been satisfied or waived in accordance with the terms thereof; and
6. under the Rights Offering Sub Plan, the Debtors shall have entered into the Exit Financing
and drawn an amount thereunder as of the Effective Date that together with the
proceeds of the Rights Offering is sufficient to fund payment in full to holders of Allowed
Term Loan Facility Claims pursuant to ARTICLE III.C.5.c of the Plan.
B. Waiver of Conditions Precedent
Subject to the terms of the Equity Commitment Agreement, the Debtors and the Requisite Parties
may jointly waive any of the conditions to the Effective Date set forth in ARTICLE XI.A at any time
without any notice to other parties in interest and without any further notice to or action, order,
or approval of the Bankruptcy Court, and without any formal action other than proceeding to confirm
or consummate the Plan.
C. Effect of Non-Occurrence of Conditions to Consummation
If prior to Consummation, the Confirmation Order is vacated pursuant to a Final Order, then
except as provided in any order of the Bankruptcy Court vacating the Confirmation Order, the Plan
will be null and void in all respects, and nothing contained in the Plan or Disclosure Statement
shall (1) constitute a waiver or release of any Claims, Interests, or Causes of Action, (2)
prejudice in any manner the rights of any Debtor or any other Entity, or (3) constitute an
admission, acknowledgment, offer, or undertaking of any sort by any Debtor or any other Entity.
ARTICLE XII.
RETENTION OF JURISDICTION
Notwithstanding the entry of the Confirmation Order and the occurrence of the Effective Date,
the Bankruptcy Court shall retain exclusive jurisdiction over all matters arising out of, or
related to, the Chapter 11 Cases and the Plan pursuant to sections 105(a) and 1142 of the
Bankruptcy Code, including jurisdiction to:
1. allow, disallow, determine, liquidate, classify, estimate, or establish the priority,
secured or unsecured status, or amount of any Claim or Interest, including the resolution of any
request for payment of any Administrative Claim and the resolution of any and all objections to the
secured or unsecured status, priority, amount, or allowance of Claims or Interests;
2. decide and resolve all matters related to the granting and denying, in whole or in part,
any applications for allowance of compensation or reimbursement of expenses to Professionals
authorized pursuant to the Bankruptcy Code or the Plan;
3. resolve any matters related to Executory Contracts or Unexpired Leases, including: (a) the
assumption, assumption and assignment, or rejection of any Executory Contract or Unexpired Lease to
which a Debtor is party or with respect to which a Debtor may be liable and to hear, determine,
and, if necessary, liquidate, any Cure or Claims arising
58
therefrom, including pursuant to section
365 of the Bankruptcy Code; (b) any potential contractual obligation under any Executory Contract
or Unexpired Lease that is assumed; (c) the Reorganized Debtors amendment, modification, or
supplement, after the Effective Date, pursuant to ARTICLE VII, of the list of Executory Contracts
and Unexpired Leases to be
assumed or rejected or otherwise; and (d) any dispute regarding whether a contract or lease is
or was executory or expired;
4. ensure that distributions to holders of Allowed Claims are accomplished pursuant to the
provisions of the Plan and adjudicate any and all disputes arising from or relating to
distributions under the Plan;
5. adjudicate, decide, or resolve any motions, adversary proceedings, contested or litigated
matters, and any other matters, and grant or deny any applications involving a Debtor that may be
pending on the Effective Date;
6. adjudicate, decide, or resolve any and all matters related to Causes of Action;
7. adjudicate, decide, or resolve any and all matters related to section 1141 of the
Bankruptcy Code;
8. enter and implement such orders as may be necessary or appropriate to execute, implement,
or consummate the provisions of the Plan and all contracts, instruments, releases, indentures, and
other agreements or documents created in connection with the Plan or the Disclosure Statement;
9. enter and enforce any order for the sale of property pursuant to sections 363, 1123, or
1146(a) of the Bankruptcy Code;
10. grant any consensual request to extend the deadline for assuming or rejecting Unexpired
Leases pursuant to section 365(d)(4) of the Bankruptcy Code;
11. resolve any cases, controversies, suits, disputes, or Causes of Action that may arise in
connection with the Consummation, interpretation, or enforcement of the Plan or any Entitys
obligations incurred in connection with the Plan;
12. enter and implement such orders as may be necessary or appropriate to execute, implement,
or consummate the provisions of all contracts, instruments, releases, indentures, and other
agreements or documents approved by Final Order in the Chapter 11 Cases;
13. issue injunctions, enter and implement other orders, or take such other actions as may be
necessary or appropriate to restrain interference by any Entity with Consummation or enforcement of
the Plan;
14. resolve any cases, controversies, suits, disputes, or Causes of Action with respect to the
releases, injunctions, and other provisions contained in ARTICLE X and enter such orders as may be
necessary or appropriate to implement such releases, injunctions, and other provisions;
59
15. resolve any cases, controversies, suits, disputes, or Causes of Action with respect to the
repayment or return of distributions and the recovery of additional amounts owed by the holder of a
Claim for amounts not timely repaid pursuant to ARTICLE IX.D.1;
16. enter and implement such orders as are necessary or appropriate if the Confirmation Order
is for any reason modified, stayed, reversed, revoked, or vacated;
17. determine any other matters that may arise in connection with or relate to the Plan, the
Disclosure Statement, the Confirmation Order, or any contract, instrument, release, indenture, or
other agreement or document created in connection with the Plan or the Disclosure Statement;
18. enter an order or Final Decree concluding or closing the Chapter 11 Cases;
19. consider any modifications of the Plan, to cure any defect or omission, or to reconcile
any inconsistency in any Bankruptcy Court order, including the Confirmation Order;
20. determine requests for the payment of Claims and Interests entitled to priority pursuant
to section 507 of the Bankruptcy Code;
21. hear and determine disputes arising in connection with the interpretation, implementation,
or enforcement of the Plan, or the Confirmation Order, including disputes arising under agreements,
documents, or instruments executed in connection with the Plan;
22. hear and determine matters concerning state, local, and federal taxes in accordance with
sections 346, 505, and 1146 of the Bankruptcy Code;
23. hear and determine all disputes involving the existence, nature, or scope of the Debtors
discharge, including any dispute relating to any liability arising out of the termination of
employment or the termination of any employee or retiree benefit program, regardless of whether
such termination occurred prior to or after the Effective Date;
24. hear and determine matters related to the Accommodation Agreements and related agreements;
25. enforce all orders previously entered by the Bankruptcy Court; and
26. hear any other matter not inconsistent with the Bankruptcy Code.
ARTICLE XIII.
MISCELLANEOUS PROVISIONS
A. No Stay of Confirmation Order
The Confirmation Order shall contain a waiver of any stay of enforcement otherwise applicable,
including pursuant to Bankruptcy Rules 3020(e) and 7062.
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B. Modification of Plan
Effective as of the date hereof and subject to the limitations and rights contained in the
Plan (1) the Debtors reserve the right, in accordance with the Bankruptcy Code and the Bankruptcy
Rules, to amend or modify the Plan before the entry of the Confirmation Order, subject to, and in
accordance with, the terms of the Plan Support Agreement, (2) after the entry of the Confirmation
Order, the Debtors or the Reorganized Debtors, as applicable, may, upon order of the Bankruptcy
Court, amend or modify the Plan with the consent of the Requisite Parties, in accordance with
section 1127(b) of the Bankruptcy Code or remedy any defect or omission or reconcile any
inconsistency in the Plan in such manner as may be necessary to carry out the purpose and intent of
the Plan, and (3) the Debtors reserve the right to modify the Plan, subject to, and in accordance
with, the terms of the Plan Support Agreement, to implement the sale of all or substantially all of
the assets of the Debtors pursuant to sections 363 and 1123(a)(5)(D) of the Bankruptcy Code.
C. Revocation or Withdrawal of Plan
The Debtors reserve the right, subject to, and in accordance with, the terms of the Plan
Support Agreement, to revoke or withdraw the Plan before the Confirmation Date and to file
subsequent chapter 11 plans. If the Debtors revoke or withdraw the Plan, or if Confirmation or the
Effective Date does not occur, then (1) the Plan will be null and void in all respects, (2) any
settlement or compromise embodied in the Plan, assumption or rejection of Executory Contracts or
Unexpired Leases effected by the Plan, and any document or agreement executed pursuant hereto will
be null and void in all respects, and (3) nothing contained in the Plan shall (a) constitute a
waiver or release of any Claims, Interests, or Causes of Action, (b) prejudice in any manner the
rights of any Debtor or any other Entity, or (c) constitute an admission, acknowledgement, offer,
or undertaking of any sort by any Debtor or any other Entity.
D. Confirmation of the Plan
The Debtors request Confirmation of the Plan under section 1129(b) of the Bankruptcy Code with
respect to any Impaired Class that does not accept the Plan pursuant to section 1126 of the
Bankruptcy Code. The Debtors reserve the right to amend the Plan to the extent, if any, that
Confirmation pursuant to section 1129(b) of the Bankruptcy Code requires modification.
E. Additional Documents
On or before the Effective Date, the Debtors may file with the Bankruptcy Court such
agreements and other documents as may be necessary or appropriate to effectuate and further
evidence the terms and conditions of the Plan, subject to, and in accordance with, the terms of the
Plan Support Agreement. The Debtors or the Reorganized Debtors, as applicable, and all holders of
Claims receiving distributions pursuant to the Plan and all other parties in interest shall, from
time to time, prepare, execute, and deliver any agreements or documents and take any other actions
as may be necessary or advisable to effectuate the provisions and intent of the Plan.
61
F. Payment of Statutory Fees
All fees payable pursuant to 28 U.S.C. §1930(a), as determined by the Bankruptcy Court at a
hearing pursuant to section 1128 of the Bankruptcy Code, shall be paid for each quarter (including
any fraction thereof) until the Chapter 11 Cases are converted, dismissed, or closed, whichever
occurs first.
G. Dissolution of Creditors Committee
On the Confirmation Date, the Creditors Committee shall dissolve automatically, and its
members shall be released and discharged from all rights, duties, responsibilities, and liabilities
arising from, or related to, the Chapter 11 Cases; provided, however, that the
Creditors Committee shall be deemed to remain in existence solely with respect to applications
filed pursuant to sections 330 and 331 of the Bankruptcy Code.
H. Role of the Oversight Committee
The Oversight Committee shall have the right to monitor the manner and timing of the
processing of the allowance and disallowance of Class H Claims and the manner and timing of
distributions under the Plan to holders of Allowed Class H Claims, and to receive from the
Reorganized Debtors upon reasonable request information, and be heard by the Bankruptcy Court, in
connection with the foregoing. In addition, the Oversight Committee shall have the right to object
and be heard by the Bankruptcy Court with respect to any reconciliation or resolution of any
Disputed Claim that is a Class H Claim that has a face amount as filed of greater than or equal to
$2.0 million, provided such Claim is not a Trade Claim, subject to the Reorganized Debtors
business judgment to reconcile or resolve any such Claim. The Oversight Committee shall
automatically dissolve following the reconciliation or resolution and final distribution under the
Plan on account of all Class H Claims.
The Oversight Committee may retain only those advisors that are retained on terms that are
reasonably acceptable to the Reorganized Debtors or authorized to be retained by further order of
the Bankruptcy Court and the Reorganized Debtors shall compensate such advisors in the ordinary
course of business for reasonable fees and expenses incurred in rendering services to the Oversight
Committee in connection with its exercise of the objection rights contemplated in this ARTICLE
XIII.H of the Plan.
I. Reservation of Rights
Except as expressly set forth in the Plan, the Plan shall have no force or effect unless the
Bankruptcy Court shall enter the Confirmation Order. None of the filing of the Plan, any statement
or provision contained in the Plan, or the taking of any action by any Debtor with respect to the
Plan, the Disclosure Statement, or the Plan Supplement shall be or shall be deemed to be an
admission or waiver of any rights of any Debtor with respect to the holders of Claims or Interests
prior to the Effective Date.
62
J. Successors and Assigns
The rights, benefits, and obligations of any Entity named or referred to in the Plan shall be
binding on, and shall inure to the benefit of any heir, executor, administrator, successor or
assign, affiliate, officer, director, agent, representative, attorney, beneficiaries, or guardian,
if any, of each Entity.
K. Service of Documents
1. After the Effective Date, any pleading, notice, or other document required by the Plan to
be served on or delivered to the Reorganized Debtors shall be served on:
Debtors | Counsel to the Debtors | |
Visteon Corporation |
Pachulski Stang Ziehl & Jones LLP | |
One Village Center Drive |
919 North Market Street, 17th Floor | |
Van Buren Township, MI 48111 |
Wilmington, DE 19899-8705 | |
Attn.: Michael K. Sharnas, Esq. |
Attn.: Laura Davis Jones, Esq. | |
James E. O'Neill, Esq. | ||
Mark M. Billion, Esq. | ||
Kirkland & Ellis LLP | ||
300 North LaSalle | ||
Chicago, IL 60654 | ||
Attn.: James H. M. Sprayregen, P.C. | ||
James J. Mazza, Jr., Esq. | ||
Sienna R. Singer, Esq. | ||
601 Lexington Avenue | ||
New York, NY 10022-4611 | ||
Attn.: Marc Kieselstein, P.C. | ||
Brian S. Lennon, Esq. |
63
Counsel to the Investors | ||
White & Case LLP |
Fox Rothschild LLP | |
1155 Avenue of the Americas |
919 North Market Street, Suite 1600 | |
New York, NY 10036 |
Wilmington, DE 19801 | |
Attn.: Thomas E Lauria, Esq. |
Attn.: Jeffrey M. Schlerf, Esq. | |
Gerard Uzzi, Esq. |
Eric M. Sutty, Esq. | |
Andrew C. Ambruoso, Esq. |
John H. Strock, Esq. | |
Akin Gump Strauss Hauer & Feld LLP |
Blank Rome LLP | |
One Bryant Park |
1201 Market Street, Suite 800 | |
New York, NY 10036 |
Wilmington, DE 19801 | |
Attn.: Michael Stamer, Esq. |
Attn.: Stanley Tarr, Esq. | |
Arik Preis, Esq. |
Counsel to the Creditors' Committee | ||
Brown Rudnick LLP |
Brown Rudnick LLP | |
Seven Times Square |
City Place I | |
New York, NY 10036 |
Hartford, CT 06103 | |
Attn.: Robert J. Stark, Esq. |
Attn.: Howard L. Siegel, Esq. | |
Brown Rudnick LLP |
Ashby & Geddes, P.A. | |
One Financial Center |
500 Delaware Avenue, 8th Floor | |
Boston, MA 02111 |
Wilmington, DE 19801 | |
Attn.: Jeremy B. Coffey, Esq. |
Attn.: William P. Bowden, Esq. | |
Gregory A. Taylor, Esq. |
Counsel to the Term Loan Lenders | Counsel to DIP Facility Lenders | |
Bingham McCutchen LLP |
Bingham McCutchen LLP | |
One Federal Street |
One Federal Street | |
Boston, MA 02110-1726 |
Boston, MA 02110-1726 | |
Attn.: Michael Reilly |
Attn.: Michael Reilly | |
Amy Kyle |
Amy Kyle | |
One State Street |
One State Street | |
Hartford, CT 06103-3178 |
Hartford, CT 06103-3178 | |
Attn.: Peter H. Bruhn |
Attn.: Peter H. Bruhn |
64
United States Trustee | Counsel to ABL Lender | |
Office of the United States Trustee |
McGuireWoods LLP | |
for the District of Delaware |
EQT plaza | |
844 King Street, Suite 2207 |
625 Liberty Avenue, 23rd Floor | |
Wilmington, DE 19801 |
Pittsburgh, PA 15222-3142 | |
Attn.: Jane M. Leamy, Esq. |
Attn.: Mark E. Freedlander |
L. Term of Injunctions or Stays
Unless otherwise provided in the Plan or in the Confirmation Order, all injunctions or stays
in effect in the Chapter 11 Cases pursuant to sections 105 or 362 of the Bankruptcy Code or any
order of the Bankruptcy Court, and existing on the Confirmation Date (excluding any injunctions or
stays contained in the Plan or the Confirmation Order) shall remain in full force and effect until
the Effective Date. All injunctions or stays contained in the Plan or the Confirmation Order shall
remain in full force and effect in accordance with their terms.
M. Entire Agreement
Except as otherwise indicated, the Plan supersedes all previous and contemporaneous
negotiations, promises, covenants, agreements, understandings, and representations on such
subjects, all of which have become merged and integrated into the Plan.
Notwithstanding anything to the contrary in the Plan (including any amendments, supplements,
or modifications to the Plan) or the Confirmation Order (and any amendments, supplements, or
modifications thereto) or an affirmative vote to accept the Plan submitted by any Investor, nothing
contained in the Plan (including any amendments, supplements, or modifications thereto) shall
alter, amend, or modify the rights of the Investors under the Equity Commitment Agreement.
N. Plan Supplement Exhibits
All exhibits and documents included in the Plan Supplement are incorporated into and are a
part of the Plan as if set forth in full in the Plan. After the exhibits and documents are filed,
copies of such exhibits and documents shall be made available upon written request to the Debtors
counsel at the address above or by downloading such exhibits and documents from
http://www.kccllc.net/Visteon or the Bankruptcy Courts website at www.deb.uscourts.gov. Unless
otherwise ordered by the Bankruptcy Court, to the extent any exhibit or document in the Plan
Supplement is inconsistent with the terms of any part of the Plan that does not constitute the Plan
Supplement, such part of the Plan that does not constitute the Plan Supplement shall control.
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O. Severability
If, prior to Confirmation, any term or provision of the Plan is held by the Bankruptcy Court
to be invalid, void, or unenforceable, the Bankruptcy Court shall have the power to alter and
interpret such term or provision to make it valid or enforceable to the maximum extent practicable,
consistent with the original purpose of the term or provision held to be invalid, void, or
unenforceable, and such term or provision shall then be applicable as altered or interpreted.
Notwithstanding any such holding, alteration, or interpretation, the remainder of the terms and
provisions of the Plan will remain in full force and effect and will in no way be affected,
impaired, or invalidated by such holding, alteration, or interpretation. The Confirmation Order
shall constitute a judicial determination and shall provide that each term and provision of the
Plan, as it may have been altered or interpreted in accordance with the foregoing, is (1) valid and
enforceable pursuant to its terms, (2) integral to the Plan and may not be deleted or modified
without the Debtors consent, and (3) nonseverable and mutually dependent.
The remainder of this page is intentionally left blank.
66
Van Buren Township, Michigan
Dated: May 24, 2010
Dated: May 24, 2010
VISTEON CORPORATION (for itself and all other Debtors) |
||||
By: | ||||
Name: | William G. Quigley, III | |||
Title: | Chief Financial Officer and Executive Vice President | |||
67
EXHIBIT A
BOARD SELECTION TERM SHEET
1
THIS TERM SHEET IS NOT AN OFFER WITH RESPECT TO ANY
SECURITIES OR A SOLICITATION OF ACCEPTANCES OF A CHAPTER 11
PLAN WITHIN THE MEANING OF SECTION 1125 OF THE BANKRUPTCY
CODE. ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL
APPLICABLE SECURITIES LAWS AND/OR PROVISIONS OF THE
BANKRUPTCY CODE.
SECURITIES OR A SOLICITATION OF ACCEPTANCES OF A CHAPTER 11
PLAN WITHIN THE MEANING OF SECTION 1125 OF THE BANKRUPTCY
CODE. ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL
APPLICABLE SECURITIES LAWS AND/OR PROVISIONS OF THE
BANKRUPTCY CODE.
TERM SHEET REGARDING SELECTION OF INITIAL POST-EMERGENCE
BOARD OF DIRECTORS OF REORGANIZED VISTEON CORPORATION
BOARD OF DIRECTORS OF REORGANIZED VISTEON CORPORATION
This Term Sheet is intended to outline the process by which Visteon Corporation
(Visteon), a debtor and debtor in possession in the chapter 11 case In re Visteon
Corp., et al. (Case No. 09-11786) (Bankr. D.Del.), together with certain holders of prepetition
senior unsecured note claims (the Lead Investors),1 in consultation with the
Ad Hoc Counsel (as defined in the ECA) will select the nine (9) individuals to serve on the board
of directors of reorganized Visteon upon its emergence from chapter 11 (the New Board);
provided, that nothing in this Term Sheet shall be deemed to require any Lead Investor to
participate in selection of the New Board (each of the Lead Investors that elect to participate in
selection of the New Board, the Participating Lead Investors). Nothing in this Term
Sheet shall be deemed to be the solicitation of an acceptance or rejection of a plan of
reorganization within the meaning of section 1125 of the Bankruptcy Code. Further, nothing in this
Term Sheet shall be an admission of fact or liability or deemed binding on the Lead Investors or
Visteon.
* * * * *
1 | The Lead Investors are the Lead Investors as defined in the Equity Commitment Agreement among Visteon and the Investors party thereto (the ECA). |
1
Purpose
|
To select the nine (9) members of the New Board. | |
Director Pool/Independent Search Firm |
The Participating Lead Investors and Visteon after Good Faith Consultation (as defined in the ECA) shall jointly select an independent, national search firm to assist with the selection of potential candidates for nomination to the New Board. Visteon and the Participating Lead Investors after Good Faith Consultation shall select the members of the New Board from a group of certain potential candidates, which group shall be comprised of no less than fifteen (15) and no more than eighteen (18) individuals as determined by the Majority Lead Investors2 after Good Faith Consultation (the Director Pool). The Director Pool shall consist of: (a) any of the current members of the board of directors of Visteon who wish to serve on the New Board and who are approved by the Majority Lead Investors after Good Faith Consultation; (b) a majority of the remaining nominees (being the lowest number necessary to constitute such a majority) shall be nominated by the Majority Lead Investors after Good Faith Consultation; and (c) any nominee not identified pursuant to clause (a) or (b) shall be recommended by the independent search firm in consultation with the Participating Lead Investors and Visteon after Good Faith Consultation. | |
Selection of Members
of the New Board
|
The New Board shall consist of nine (9) members to be designated as follows: (i) the current Chief Executive Officer of Visteon as Chairman of the New Board; (ii) two (2) individuals designated by Visteon from the Director Pool, subject to the approval of the Majority Lead Investors, which approval may be withheld only on the basis of good faith and reasonable concerns regarding the disinterestedness, independence and qualifications of such individuals after Good Faith Consultation; and (iii) six (6) individuals designated by the Majority Lead Investors after Good Faith Consultation from the Director Pool. The |
2 | Majority Lead Investors shall mean a majority in interest of the Participating Lead Investors. A majority in interest of the Participating Lead Investors shall be determined based on the allocation of Visteon common stock issuable to each of the Participating Lead Investors pursuant to the ECA and the plan of reorganization, which would take into account the issuance of common stock to each of the Participating Lead Investors in connection with (i) the 5% equity distribution to all bondholders pursuant to the plan of reorganization, (ii) the Direct Commitment in accordance with the ECA, (iii) the Backstop Commitment in accordance with the ECA and (iv) the exercise by the Participating Lead Investors of their respective Rights in accordance with the ECA, assuming the full exercise of such Rights by all of the Participating Lead Investors. |
2
composition of the New Board shall satisfy all applicable rules (including independence requirements) of the NYSE and the Securities Exchange Act of 1934. | ||
Timing of Selection of
New Board
|
The individuals designated to the New Board in accordance with the procedures contained in this Term Sheet shall be disclosed prior to the hearing on confirmation of the plan of reorganization. | |
Term
|
One-year term no staggered board. |
3
EXHIBIT B
Warrant Agreement
WARRANT AGREEMENT
by and between
VISTEON CORPORATION
and
[___],
as Warrant Agent
as Warrant Agent
Dated as of [___], 2010
WARRANT AGREEMENT
This WARRANT AGREEMENT (as amended, supplemented, amended and restated or otherwise
modified from time to time, this Warrant Agreement), is entered into as of [___],
20101, by and between VISTEON CORPORATION, a Delaware corporation (the
Company), and
[___]2, a [___] [___], as warrant agent (together with any
successor appointed pursuant to Section 20 hereof, the Warrant Agent).
WHEREAS, pursuant to the terms and conditions of the Second Amended Joint Plan of
Reorganization of Visteon Corporation and its debtor affiliates pursuant to chapter 11 of title 11
of the United States Code (the Bankruptcy Code) filed on [___], 2010 in the United
States Bankruptcy Court for the District of Delaware, Case No. [___] (as may be amended,
supplemented or otherwise modified from time to time, the Plan), the Company proposes to
issue Warrants (the Warrants) entitling the holders thereof to purchase up to 2,355,000
shares of common stock, par value $0.01 per share, of the Company (Common Stock together
with any other securities, cash or other property that may be issuable upon exercise of a Warrant
as shall result from the adjustments specified in Section 12 hereof at an exercise price of
$9.66 per share of Common Stock, as may be adjusted pursuant to Section 12 hereof (the
Exercise Price);
WHEREAS, the Warrants are being issued pursuant to, and upon the terms and conditions set
forth in, the Plan in an offering in reliance on the exemption from the registration requirements
of the Securities Act of 1933, as amended (the Securities Act) afforded by section 1145
of the Bankruptcy Code or Section 4(2) of the Securities Act, and of any applicable state
securities or blue sky laws;
WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing so to act, in connection with the issuance of Warrants and other matters
as provided herein; and
WHEREAS, for purposes of this Warrant Agreement, person shall be interpreted broadly to
include an individual, corporation, partnership, joint venture, association, joint stock company,
limited liability company, limited liability partnership, national banking association, trust,
trustee, unincorporated organization, government, governmental unit, agency, or political
subdivision thereof, or other entity.
NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth,
the parties hereto agree as follows:
SECTION 1 Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent
to act as warrant agent for the Company in respect of the Warrants upon the express terms and
subject to the conditions herein set forth (and no implied terms), and the Warrant Agent hereby
accepts such appointment.
SECTION 2 Issuance of Warrants. In accordance with Section 5 hereof and the
Plan and subject to the next sentence, the Company will cause to be issued to the Depository (as
defined below), one or more Global Warrant Certificates (as defined below) evidencing the Warrants.
At the election of a holder of Warrants and in lieu of holding Warrants through the Depository,
such holder may elect to be issued Warrants by book-entry registration on the books and records of
the Warrant Agent (Book-Entry Warrants) and such Warrants shall be evidenced by
statements issued by the Warrant Agent from time to time to the registered holder of book-entry
Warrants reflecting such book-entry position (the Warrant
1 | The Effective Date of the Plan. | |
2 | Warrant Agent to be chosen by the reasonable agreement of the Company and the Warrant holders. |
2
Statement). Each Warrant
entitles the holder, upon proper exercise and payment of the applicable Exercise Price, to receive
from the Company, one share of Common Stock (as may be adjusted pursuant to Section 12
hereof). The shares of Common Stock or (as provided pursuant to Section 12 hereof) other
shares of capital stock deliverable upon proper exercise of the Warrants are referred to herein as
the Warrant Shares. The words holder or holders as used herein in
respect of any Warrants or Warrant Shares, shall mean the registered holder or registered holders
thereof.
SECTION 3 Warrant Certificates. Subject to Section 6 of this Agreement, the
Warrants shall be issued (1) via book-entry registration on the books and records of the Warrant
Agent and evidenced by a Warrant Statement, and/or (2) in the form of one or more global
certificates (the Global Warrant Certificates), in substantially the form set forth in
Exhibit A attached hereto. The Warrant Statements and Global Warrant Certificates may bear
such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Warrant Agreement, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be required to comply with
any law or with any rules made pursuant thereto or with any rules of any securities exchange or as
may, consistently herewith, be determined by (i) in the case of Global Warrant Certificates, the
Appropriate Officers (as hereinafter defined) executing such Global Warrant Certificates, as
evidenced by their execution of the Global Warrant Certificates, or (ii) in the case of a Warrant
Statement, any Appropriate Officer, and all of which shall be reasonably acceptable to the Warrant
Agent. The Global Warrant Certificates shall be deposited on or after the date hereof with, or with
the Warrant Agent as custodian for, The Depository Trust Company (the Depository) and
registered in the name of Cede & Co., as the Depositorys nominee. Each Global Warrant Certificate
shall represent such number of the outstanding Warrants as specified therein, and each shall
provide that it shall represent the aggregate amount of outstanding Warrants from time to time
endorsed thereon and that the aggregate amount of outstanding Warrants represented thereby may from
time to time be reduced or increased, as appropriate, in accordance with the terms of this Warrant
Agreement.
SECTION 4 Execution of Warrant Certificates. Global Warrant Certificates shall be
signed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, or any
Vice President, and by the Secretary or any Assistant Secretary (each, an Appropriate
Officer). Each such signature upon the Global Warrant Certificates may be in the form of a
facsimile or other electronically transmitted signature (including, without limitation, electronic
transmission in portable document format (.pdf)) of any such Appropriate Officer and may be
imprinted or otherwise reproduced on the Global Warrant Certificates and for that purpose the
Company may adopt and use the facsimile or other electronically transmitted signature of any
Appropriate Officer who shall have been an Appropriate Officer at the time of entering into this
Warrant Agreement. If any Appropriate Officer who shall have signed any of the Global Warrant
Certificates shall cease to be such Appropriate Officer before the Global Warrant Certificates so
signed shall have been countersigned by the Warrant Agent or delivered by the Company, such Global
Warrant Certificates nevertheless may be countersigned and delivered as though such Appropriate
Officer had not ceased to be such Appropriate Officer of the Company; and any Global Warrant
Certificate may be signed on behalf of the Company by any person who, at the actual date of the
execution of such Global Warrant Certificate, shall be a proper Appropriate Officer of the Company
to sign such Global Warrant Certificate, although at the date of the execution of this Warrant
Agreement any such person was not such Appropriate Officer.
Global Warrant Certificates shall be dated the date of countersignature by the Warrant Agent
and shall represent one or more whole Warrants.
SECTION 5 Registration and Countersignature. Upon receipt of a written order of the
Company, the Warrant Agent, on behalf of the Company, shall (i) register in the Warrant Register
(as defined below) the Book-Entry Warrants as well as any Global Warrant Certificates and exchanges
and transfers of outstanding Warrants in accordance with the procedures set forth in this Warrant
Agreement and (ii) upon receipt of the Global Warrant Certificates duly executed on behalf of the
Company, countersign one or
more Global Warrant Certificates evidencing Warrants and shall deliver
such Global Warrant Certificates to or upon the written order of the Company. Such written order of
the Company shall specifically state the number of Warrants that are to be issued as Book-Entry
Warrants and the number of Warrants that are to be issued as one or more Global Warrant
Certificates. A Global Warrant Certificate shall be, and shall
remain, subject to the provisions of this Warrant Agreement until such time as all of the
Warrants evidenced thereby shall have been duly exercised or shall have expired or been canceled in
accordance with the terms hereof. Each holder of Warrants shall be bound by all of the terms and
provisions of this Warrant Agreement (a copy of which is available on request to the Secretary of
the Company) as fully and effectively as if such holder had signed the same.
No Global Warrant Certificate shall be valid for any purpose, and no Warrant evidenced thereby
shall be exercisable, until such Global Warrant Certificate has been countersigned by the manual or
facsimile signature of the Warrant Agent. Such signature by the Warrant Agent upon any Global
Warrant Certificate executed by the Company shall be conclusive evidence that such Global Warrant
Certificate so countersigned has been duly issued hereunder.
The Warrant Agent shall keep, at an office designated for such purpose, books (the
Warrant Register) in which, subject to such reasonable regulations as it may prescribe,
it shall register the Book-Entry Warrants as well as any Global Warrant Certificates and exchanges
and transfers of outstanding Warrants in accordance with the procedures set forth in Section
6 of this Warrant Agreement, all in form satisfactory to the Company and the Warrant Agent.
Prior to due presentment for registration of transfer or exchange of any Warrant in accordance
with the procedures set forth in this Warrant Agreement, the Warrant Agent and the Company may deem
and treat the person in whose name any Warrant is registered as the absolute owner of such Warrant
(notwithstanding any notation of ownership or other writing made in a Global Warrant Certificate by
anyone), for the purpose of any exercise thereof, any distribution to the holder of the Warrant
thereof and for all other purposes, and neither the Warrant Agent nor the Company shall be affected
by notice to the contrary.
SECTION 6 Registration of Transfers and Exchanges.
(a) Transfer and Exchange of Global Warrant Certificates or Beneficial Interests
Therein. The transfer and exchange of Global Warrant Certificates or beneficial interests
therein shall be effected through the Depository, in accordance with this Warrant Agreement and the
procedures of the Depository therefor.
(b) Exchange of a Beneficial Interest in a Global Warrant Certificate for a Book-Entry
Warrant.
(i) Any holder of a beneficial interest in a Global Warrant Certificate may, upon request,
exchange such beneficial interest for a Book-Entry Warrant. Upon receipt by the Warrant Agent from
the Depository or its nominee of written instructions or such other form of instructions as is
customary for the Depository on behalf of any person having a beneficial interest in a Global
Warrant Certificate, the Warrant Agent shall cause, in accordance with the standing instructions
and procedures existing between the Depository and Warrant Agent, the number of Warrants
represented by the Global Warrant Certificate to be reduced by the number of Warrants to be
represented by the Book-Entry Warrants to be issued in exchange for the beneficial interest of such
person in the Global Warrant Certificate and, following such reduction, the Warrant Agent shall
register in the name of the holder a Book-Entry Warrant and deliver to said Warrant holder a
Warrant Statement.
(ii) Book-Entry Warrants issued in exchange for a beneficial interest in a Global Warrant
Certificate pursuant to this Section 6(b) shall be registered in such names as the
Depository, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Warrant Agent. The Warrant Agent shall deliver such Warrant Statements to the persons
in whose names such Warrants are so registered.
(c) Transfer and Exchange of Book-Entry Warrants. Book-Entry Warrants surrendered for
exchange or for registration of transfer shall be cancelled by the Warrant Agent. Such cancelled
Book-Entry Warrants shall then be disposed of by or at the direction of the Company in accordance
with applicable law. When Book-Entry Warrants are presented to or deposited with the Warrant Agent
with a written request:
(i) to register the transfer of the Book-Entry Warrants; or
(ii) to exchange such Book-Entry Warrants for an equal number of Book-Entry Warrants of other
authorized denominations,
then in each case the Warrant Agent shall register the transfer or make the exchange as
requested if its requirements for such transactions are met; provided, however, that the Warrant
Agent has received a written instruction of transfer in form satisfactory to the Warrant Agent,
duly executed by the holder thereof or by his attorney, duly authorized in writing.
(d) Exchange or Transfer of a Book-Entry Warrant for a Beneficial Interest in a
Global Warrant Certificate. Upon receipt by the Warrant Agent of appropriate written
instruments of transfer with respect to a Book-Entry Warrant, in form satisfactory to the Warrant
Agent, together with written instructions directing the Warrant Agent to make, or to direct the
Depository to make, an endorsement on the Global Warrant Certificate to reflect an increase in the
number of Warrants represented by the Global Warrant Certificate equal to the number of Warrants
represented by such Book-Entry Warrant (such instruments of transfer and instructions to be duly
executed by the holder thereof or the duly appointed legal representative thereof or by his
attorney, duly authorized in writing, such signatures to be guaranteed by an eligible guarantor
institution to the extent required by the Warrant Agent or the Depositary), then the Warrant Agent
shall cancel such Book-Entry Warrant on the Warrant Register and cause, or direct the Depository to
cause, in accordance with the standing instructions and procedures existing between the Depository
and the Warrant Agent, the number of Warrants represented by the Global Warrant Certificate to be
increased accordingly. If no Global Warrant Certificates are then outstanding, the Company shall
issue, and the Warrant Agent shall countersign, a new Global Warrant Certificate representing the
appropriate number of Warrants.
(e) Restrictions on Transfer and Exchange of Global Warrant Certificates.
Notwithstanding any other provisions of this Warrant Agreement (other than the provisions set forth
in Section 6(f)), unless and until it is exchanged in whole for a Book-Entry Warrant, a
Global Warrant Certificate may not be transferred as a whole except by the Depository to a nominee
of the Depository or by a nominee of the Depository to the Depository or another nominee of the
Depository or by the Depository or any such nominee to a successor Depository or a nominee of such
successor Depository.
(f) Book-Entry Warrants. If at any time:
(i) the Depository for the Global Warrant Certificates notifies the Company that the
Depository is unwilling or unable to continue as Depository for the Global Warrant Certificates and
a successor Depository for the Global Warrant Certificates is not appointed by the Company within
90 days after delivery of such notice; or
(ii) the Company, in its sole discretion, notifies the Warrant Agent in writing that all
Warrants shall be exclusively in the form of Book-Entry Warrants, then the Warrant Agent, upon
written instructions signed by an Appropriate Officer of the Company and all other necessary
information, shall register Book-Entry Warrants, in an aggregate number equal to the number of
Warrants represented by the Global Warrant Certificates, in exchange for such Global Warrant
Certificates, in such names and in such amounts as directed by the Depository or, in the absence of
instructions from the Depository, the Company.
(g) Cancellation of Global Warrant Certificate. At such time as all beneficial
interests in Global Warrant Certificates have either been exchanged for Book-Entry Warrants,
redeemed, repurchased or cancelled, all Global Warrant Certificates shall be returned to, or
cancelled and retained pursuant to applicable law by, the Warrant Agent.
(h) Obligations with Respect to Transfers and Exchanges of Warrants.
(i) To permit registrations of transfers and exchanges, the Company shall execute and the
Warrant Agent is hereby authorized to countersign Global Warrant Certificates and the Warrant Agent
is hereby authorized to register Book-Entry Warrants, in accordance with the provisions of
Sections 3 and 4 hereof and this Section 6 and for the purpose of any
distribution of additional Global Warrant Certificates contemplated by Section 12 hereof.
(ii) All Book-Entry Warrants and Global Warrant Certificates issued upon any registration of
transfer or exchange of Book-Entry Warrants or Global Warrant Certificates shall be the valid
obligations of the Company, entitled to the same benefits under this Warrant Agreement as the
Book-Entry Warrants or Global Warrant Certificates surrendered upon such registration of transfer
or exchange.
(iii) So long as the Depository, or its nominee, is the registered owner of a Global Warrant
Certificate, the Depository or such nominee, as the case may be, may be treated by the Company, the
Warrant Agent and any agent of the Company or the Warrant Agent as the sole owner or holder of the
Warrants represented by such Global Warrant Certificate for all purposes under this Warrant
Agreement. Except as provided in Sections 6(b)and 6(f) hereof upon the exchange of
a beneficial interest in a Global Warrant Certificate for a Book-Entry Warrant, owners of
beneficial interests in a Global Warrant Certificate will not be entitled to have any Warrants
registered in their names, and will not receive or be entitled to receive physical delivery of any
such Warrants and will not be considered the owners or holders thereof under the Warrants or this
Warrant Agreement. Neither the Company nor the Warrant Agent, in its capacity as registrar for such
Warrants, will have any responsibility or liability for any aspect of the records relating to
beneficial interests in a Global Warrant Certificate or for maintaining, supervising or reviewing
any records relating to such beneficial interests. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from
giving effect to any written certification, proxy or other authorization furnished by the
Depository or impair the operation of customary practices of the Depository governing the exercise
of the rights of a holder of a beneficial interest in a Global Warrant Certificate.
(iv) Subject to Sections 6(b), (c) and (d) hereof and this
Section 6(h), the Warrant Agent shall, upon receipt of all information required to be
delivered hereunder, from time to time register the transfer of any Book-Entry Warrants in the
Warrant Register and the transfer of any Global Warrant Certificates in the Warrant Register, upon
surrender of the Global Warrant Certificates representing such Warrants at the Warrant Agent Office
referred to in Section 21 hereof (the Warrant Agent Office), duly endorsed, and
accompanied by a completed form of assignment (or with respect to a Book-Entry Warrant, only such
completed form of assignment), duly signed by the holder thereof or by the duly appointed legal
representative thereof or by a duly authorized attorney, such signature to be guaranteed by an
eligible guarantor institution to the extent required by the Warrant Agent or the Depositary.
Upon any such registration of transfer, a new Global Warrant Certificate or a Warrant
Statement, as the case may be, shall be issued to the transferee.
SECTION 7 Acknowledgment;Securities Law Compliance. Each Warrant holder, by
its acceptance of any Warrant under this Warrant Agreement, acknowledges and agrees that the
Warrants were issued, and the Warrant Shares issuable upon exercise thereof shall be issued,
pursuant to an exemption from the registration requirement of Section 5 of the Securities Act
provided by Section 1145 of the Bankruptcy Code, and to the extent that a Warrant holder (or holder
of Warrant Shares) is an underwriter as defined in Section 1145(b)(1) of the Bankruptcy Code,
such holder may not be able to
sell or transfer any Warrants or Warrant Shares in the absence of an
effective registration statement under the Securities Act or an exemption from registration
thereunder.
SECTION 8 Terms of Warrants;Exercise of Warrants.
(a) Subject to the terms of this Warrant Agreement, each Warrant holder shall have the right,
which may be exercised at any time, and from time to time, in whole or in part, during the period
commencing on the date of original issuance of the Warrant Certificates pursuant to the terms of
this Warrant Agreement and ending at 5:00 p.m. New York City time, on
[___]3 (the
Expiration Date), to exercise each Warrant and receive from the Company the number of
fully paid and nonassessable Warrant Shares which the holder may at the time be entitled to receive
on exercise of such Warrants and payment of the aggregate Exercise Price then in effect for such
Warrant Shares. In addition, prior to the delivery of any Warrant Shares that the Company shall be
obligated to deliver upon proper exercise of the Warrants, the Company shall comply with all
applicable federal and state laws, rules and regulations which require action to be taken by the
Company.
(b) Subject to the adjustments set forth in Section 12, each Warrant, when exercised,
will entitle the holder thereof to purchase one share of Common Stock at the Exercise Price then in
effect for such share of Common Stock. Each Warrant not exercised pursuant to this Warrant
Agreement prior to the Expiration Date shall become void and all rights thereunder and all rights
in respect thereof under this Warrant Agreement shall cease as of the Expiration Date.
(c) The holder of Warrants may, until 5:00 p.m. New York City time, on the Expiration Date,
exercise, in whole or in part, at any time or from time to time, such holders right to purchase
Warrant Shares by:
(i) providing written notice of such election (a Warrant Exercise Notice) to
exercise the Warrants to the Company and Warrant Agent at the Warrant Agent Office, by overnight
courier no later than 5:00 p.m. New York City time, on the Expiration Date, which Warrant Exercise
Notice shall be in the form of an election to purchase Warrant Shares substantially in the form set
forth either (x) in Exhibit B-1 hereto, properly completed and executed by the holder,
provided that such written notice may only be submitted by a holder with respect to Book-Entry
Warrants; or (y) in Exhibit B-2 hereto, properly completed and executed by the holder,
provided that such written notice may only be submitted with respect to Warrants held through the
book-entry facilities of the Depositary, by or through persons that are direct participants in the
Depositary;
(ii) delivering no later than 5:00 p.m., New York City time, on the business day immediately
prior to the applicable Settlement Date (as defined below), such Warrants to the Warrant Agent by
book-entry transfer through the facilities of the Depository, if such Warrants are represented by a
Global Warrant Certificate; and
(iii) subject to Section 8(h) below, paying the applicable aggregate Exercise Price
for all Warrants being exercised (the Exercise Amount), together with all applicable
taxes and charges. The date three business days after a Warrant Exercise Notice is delivered is
referred to for all purposes under this Warrant Agreement as the Settlement Date.
(d) For purposes of this Section 8, the following terms shall have the meanings set
forth below:
Closing Price means on any particular date (a) if the Warrant Shares are then listed
or quoted on a Trading Market, (i) the closing price per share of Warrant Shares on such date on
the principal Trading Market (as reported by Bloomberg L.P. or a similar organization or agency
succeeding to its functions of reporting prices) or (ii) if there shall have been no sales of
Warrant Shares on such principal Trading
3 | The tenth anniversary of the Effective Date of the Plan. |
Market on such day, the average of the reported closing
bid and asked prices per share of Warrant Shares on such principal Trading Market (as reported by
Bloomberg L.P. or a similar organization or agency succeeding to its functions of reporting
prices), (b) if the Warrant Shares are not then listed or quoted on a Trading Market and if prices
for the Warrant Shares are then reported in the pink sheets published by
Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of
reporting prices), the average of the reported closing bid and asked prices per share of Warrant
Shares so reported or (c) if the shares of Warrant Shares are not then publicly traded the fair
market value as of such date of a share of Warrant Shares as reasonably determined in good faith by
the Board of Directors of the Company.
Trading Day means (a) if the Warrant Shares are listed or quoted on a Trading
Market, a day on which the principal Trading Market is open for business or (b) if the Warrant
Shares are not listed or quoted on a Trading Market, a business day.
Trading Market means any of the following markets or exchanges on which the Warrant
Shares are listed or quoted for trading on the date in question: the NYSE Amex Equities, the Nasdaq
Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange or the OTC Bulletin Board.
(e) To the extent a Warrant Exercise Notice is delivered in respect of a Warrant prior to 5:00
p.m., New York City time, on the Expiration Date, but the deliveries and payments specified in
Sections 8(a)(ii) and 8(a)(iii) above are effected thereafter but no later than
5:00 p.m., New York City time, on the Settlement Date, the Warrants shall be nonetheless deemed
exercised prior to the Expiration Date for the purposes of this Warrant Agreement.
(f) Subject to the adjustments set forth in Section 12 hereof, each Warrant, when
exercised, will entitle the holder thereof to purchase one share of Common Stock at the Exercise
Price then in effect. Each Warrant not exercised pursuant to this Warrant Agreement prior to 5:00
p.m., New York City time, on the Expiration Date shall become void and all rights thereunder and
all rights in respect thereof under this Warrant Agreement shall cease as of such time.
(g) Subject to Section 8(h), the Exercise Amount shall be payable in lawful
money of the United States of America either (i) by certified or official bank check made payable
to the order of the Company or (ii) by wire transfer in immediately available funds to an account
arranged with the Company prior to exercise.
(h) In connection with the exercise of Warrants by the holder thereof, such holder shall have
the right, in lieu of paying the Exercise Amount for such Warrants in cash (a Cashless
Exercise), to instruct the Company to reduce the number of Warrant Shares issuable to such
holder upon exercise of such Warrants by delivering to such holder a number of Warrant Shares
determined in accordance with the following formula:
Warrant Shares Issuable Following a Cashless Exercise |
= | (C P)
|
x | W |
For purposes this Section 8(h), the above symbols shall have the following meanings
with respect to an exercise of Warrants by a holder thereof:
W means the aggregate number of Warrant Shares issuable to such holder upon exercise of such
Warrants prior to any reduction pursuant to this Section 8(h);
P means the Exercise Price applicable to the exercise of such Warrants; and
C means the Closing Price on the date of exercise of such Warrants.
For purposes of Rule 144 under the Securities Act (17 CFR §230.144), the Company and the
Warrant Agent agree that the exercise of Warrants in accordance with the Cashless Exercise option
shall be deemed to be a conversion of such Warrants, pursuant to the terms hereof, into Warrant
Shares.
(i) Any exercise of a Warrant pursuant to the terms of this Warrant Agreement shall be
irrevocable and shall constitute a binding agreement between the holder and the Company,
enforceable in accordance with its terms; provided that a holder may condition its exercise of a
Warrant on the consummation of a Reorganization Event (as defined below).
(j) The Warrant Agent shall:
(i) Examine all Warrant Exercise Notices and all other documents delivered to it by or on
behalf of holders to ascertain whether, on their face, such Warrant Exercise Notices and any such
other documents have been executed and completed in accordance with their terms;
(ii) where a Warrant Exercise Notice or other document appears on its face to have been
improperly completed or executed or some other irregularity in connection with the exercise of the
Warrant exists, the Warrant Agent shall endeavor to inform the appropriate parties (including the
person submitting such instrument) of the need for fulfillment of all requirements, specifying
those requirements which appear to be unfulfilled;
(iii) inform the Company of and cooperate with and assist the Company in resolving any
reconciliation problems relating to the Warrant Exercise Notices received and delivery of Warrants
to the Warrant Agents account;
(iv) advise the Company, no later than three business days after receipt of a Warrant Exercise
Notice, of (x) the receipt of such Warrant Exercise Notice and the number of Warrants exercised in
accordance with the terms and conditions of this Warrant Agreement, (y) the instructions with
respect to delivery of the Warrant Shares, subject to the timely receipt from the Depository of the
necessary information, and (z) such other information as the Company shall reasonably require; and
(v) subject to the Warrant Shares being made available to the Warrant Agent by or on behalf of
the Company for delivery to the Depository, liaise with the Depository and endeavor to effect such
delivery to the relevant accounts at the Depository in accordance with its requirements.
(k) All questions as to the validity, form and sufficiency (including time of receipt) of a
Warrant exercise shall be reasonably determined by the Company in good faith, which determination
shall be final and binding. The Warrant Agent shall incur no liability for or in respect of and,
except to the extent such liability arises from the Warrant Agents gross negligence, willful
misconduct or bad faith (each as determined by a final, non appealable order of a court of
competent jurisdiction), shall be indemnified and held harmless by the Company for acting or
refraining from acting upon, or as a result of such determination by the Company. The Company
reserves the right to reject any and all Warrant Exercise Notices not in proper form. Such
determination by the Company shall be final and binding on the holders, absent manifest error.
Moreover, the Company reserves the absolute right to waive any of the conditions to the exercise of
Warrants or defects in Warrant Exercise Notices with regard to any particular exercise of Warrants.
The Company shall be under no duty to give notice to the holders of the Warrants of any
irregularities in any exercise of Warrants, nor shall it incur any liability for the failure to
give such notice.
(l) As soon as reasonably practicable after the exercise of any Warrant, the Company shall
issue, or otherwise deliver, in authorized denominations to or upon the order of the holder of such
Warrant either:
(i) if such holder holds the Warrants being exercised through the Depositorys book-entry
transfer facilities, by same-day or next-day credit to the Depository for the account of such
holder or for the account of a participant in the Depository the number of Warrant Shares to which
such holder is entitled, in each case registered in such name and delivered to such account as
directed in the Warrant
Exercise Notice by such holder or by the direct participant in the
Depository through which such holder is acting; or
(ii) if such holder holds the Warrants being exercised in the form of Book-Entry Warrants, a
book-entry interest in the Warrant Shares registered on the books of the Companys stock transfer
agent (the Transfer Agent) or, at the Companys option, by delivery to the address
designated by such holder in its Warrant Exercise Notice of a physical certificate or certificates
representing the number of Warrant Shares to which such holder is entitled, in fully registered
form, registered in such name or names as may be directed by such holder. Such Warrant Shares shall
be deemed to have been issued and any person so designated to be named therein shall be deemed to
have become a holder of record of such Warrant Shares as of the close of business on the date of
the delivery thereof.
Warrants shall be exercisable during the period provided for in Section 8(a) at the
election of the holder thereof, either as an entirety or from time to time for a portion of the
number of Warrant Shares issuable upon exercise of such Warrants. If less than all of the Warrants
evidenced by a Global Warrant Certificate surrendered upon the exercise of Warrants are exercised
at any time prior to 5:00 p.m., New York City time, on the Expiration Date, a new Global Warrant
Certificate or Certificates shall be issued for the remaining number of Warrants evidenced by the
Global Warrant Certificate so surrendered, and the Warrant Agent is hereby authorized to
countersign the new Global Warrant Certificate(s) pursuant to the provisions of Section 5
hereof and this Section 8. The person in whose name any certificate or certificates for the
Warrant Shares are to be issued (or such Warrant Shares are to be registered, in the case of a
book-entry transfer) upon exercise of a Warrant shall be deemed to have become the holder of record
of such Warrant Shares on the date such Warrant Exercise Notice is delivered.
(m) For purposes of this Warrant Agreement, a business day means any day other than
a Saturday, Sunday or a day on which banking institutions in New York City are authorized or
obligated by law, regulation or executive order to close or remain closed. In accordance with
Section 14 hereof, no fractional shares shall be issued upon exercise of any Warrants.
(n) All Global Warrant Certificates surrendered upon exercise of Warrants shall be cancelled
by the Warrant Agent. Such cancelled Global Warrant Certificates shall then be disposed of by or at
the direction of the Company in accordance with applicable law. The Warrant Agent shall (x) advise
an authorized representative of the Company as directed by the Company by the end of each day on
which Warrants were exercised, of (i) the number of shares of Warrant Shares issued upon exercise
of a Warrant, (ii) the delivery of Global Warrant Certificates evidencing the balance, if any, of
the shares of Common Stock issuable after such exercise of the Warrant and (iii) such other
information as the Company shall reasonably require and (y) concurrently pay to the Company all
funds received by the Warrant Agent in payment of the aggregate Exercise Price. The Warrant Agent
shall confirm such information to the Company in writing.
(o) The Warrant Agent shall keep copies of this Warrant Agreement and any notices given or
received hereunder, and provide, at the Companys expense, copies thereof to any registered holder
of the Warrants requesting, in writing, such copy prior to 5:00 p.m., New York City time, on the
Expiration Date. The Company shall supply the Warrant Agent from time to time with such numbers of
copies of this Warrant Agreement as the Warrant Agent may reasonably request.
SECTION 9 Payment of Taxes. No service charge shall be made to any holder of a Warrant
for any exercise, exchange or registration of transfer of Warrants, and the Company will pay all
documentary stamp taxes attributable to the initial issuance of Warrant Shares upon the exercise of
Warrants; provided, however, that neither the Company nor the Warrant Agent shall be required to
pay any tax or taxes which may be payable in respect of any transfer involved in the issuance of
Warrant Shares or any certificates for Warrant Shares in a name other than that of the registered
holder of a Warrant surrendered upon the exercise of a Warrant, and the Company and the Warrant
Agent shall not be required to issue or deliver such Warrant Shares or the certificates
representing the Warrant Shares unless or until the person or
persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company and the Warrant Agent that such tax has been paid.
SECTION 10 Mutilated or Missing Warrant Certificates. The Company may issue and the
Warrant Agent shall countersign, upon evidence satisfactory to the Company and the Warrant Agent of
the loss, theft, mutilation or destruction of the Global Warrant Certificate in lieu of the
Global Warrant Certificate, a new warrant certificate of like tenor and amount in the place of any
Global Warrant Certificate theretofore issued by it, alleged to have been lost, stolen, mutilated
or destroyed, and the Company and the Warrant Agent may require the owner of the lost, stolen,
mutilated or destroyed certificate, or such owners legal representative, to give the Company and
the Warrant Agent a bond sufficient to indemnify them against any claim that may be made against it
on account of the alleged loss, theft or destruction of any such Global Warrant Certificate or the
issuance of such new certificate.
SECTION 11 Reservation of Shares of Common Stock.
(a) The Company will at all times reserve and keep available out of the aggregate of its
authorized but unissued shares of Common Stock, for the purpose of enabling it to satisfy any
obligation to issue shares of Common Stock upon exercise of Warrants, the maximum number of shares
of Common Stock that may then be deliverable upon the exercise of all outstanding Warrants, and the
Transfer Agent is hereby irrevocably authorized and directed at all times to reserve such number of
authorized and unissued or treasury shares of Common Stock as shall be required for such purpose.
The Company will keep a copy of this Agreement on file with the Transfer Agent. The Warrant Agent
is hereby irrevocably authorized and directed to requisition from time to time from the Transfer
Agent stock certificates issuable upon exercise of outstanding Warrants. The Company will supply
the Transfer Agent with duly executed stock certificates for such purpose and will, upon request,
provide or otherwise make available any cash which may be payable as provided in Section
14. The Company will furnish the Transfer Agent with a copy of all notices of adjustments and
certificates related thereto, transmitted by the Company to the Warrant Agent and each holder. The
Warrant Agent shall have no duty or obligation to investigate or confirm the accuracy of the
information or the genuineness of the signatures contained in such notices or certificates.
(b) The Company covenants that all shares of Common Stock that may be issued upon exercise of
Warrants will be, upon payment of the aggregate Exercise Price and issuance thereof, duly
authorized, validly issued, fully paid, nonassessable, free of preemptive rights and free from all
taxes, liens, charges and security interests with respect to the issue thereof (other than any
liens, charges and security interests created by the Warrant holder or the person to which the
shares of Common Stock are to be issued).
SECTION 12 Adjustments. The number of shares of Common Stock for which a Warrant is
exercisable and the Exercise Price shall be subject to adjustment from time to time as set forth in
this Section 12.
(a) Stock Dividends, Subdivisions, Combinations, Recapitalizations and
Reclassification.
(i) If at any time the Company shall: (A) pay a dividend on its Common Stock (or make some
other distribution on its Common Stock) consisting of shares of Common Stock, (B) subdivide its
outstanding shares of Common Stock into a larger number of shares of Common Stock, or (C) combine
its outstanding shares of Common Stock into a smaller number of shares of Common Stock, then the
number of shares of Common Stock or other shares of capital stock for which a Warrant is
exercisable shall be adjusted so that the holder of each Warrant shall be entitled upon exercise to
receive the number of shares of Common Stock or other shares of capital stock that such Warrant
holder would have owned or have been entitled to receive after the happening of any of the events
described above, had such Warrant been exercised immediately prior to the happening of such event
(or, in the case of a dividend or distribution of Common Stock, immediately prior to the record
date therefor). An adjustment made
pursuant to this Section 12(a) shall become effective
immediately upon and contemporaneously with the effectiveness of such event.
(ii) Whenever the number of shares of Common Stock purchasable upon the exercise of any
Warrant is adjusted as herein provided in Section 12(a), the Exercise Price shall
be adjusted to equal (A) the Exercise Price immediately prior to such adjustment multiplied by the
number of shares of Common
Stock for which a Warrant is exercisable immediately prior to such adjustment divided by (B)
the number of shares of Common Stock for which a Warrant is exercisable immediately after such
adjustment.
(b) Extraordinary Dividends or Distributions. If the Company, at any time after the
date of this Agreement, pays a dividend or makes a distribution in cash, securities or other assets
to the holders of Common Stock (in their capacity as such) or other shares of capital stock into
which the Warrants are convertible, other than (i) a dividend or distribution described in
Section 12(a)(i)(A), or (ii) distributions made to the holders of Common
Stock upon the consummation of a Reorganization Event (any such non-excluded dividends or
distributions, an Extraordinary Dividend), then the Exercise Price shall be decreased,
effective immediately after the effective date of such Extraordinary Dividend, dollar-for-dollar by
the amount of cash and/or the fair market value (as reasonably determined in good faith by the
Board of Directors of the Company, without regard to any illiquidity or minority discounts) of any
securities or other assets paid or distributed on each share of Common Stock in respect of such
Extraordinary Dividend.
(c) Other Provisions Applicable to Adjustments under this Section. The following
provisions shall be applicable to the making of adjustments of the number of shares of Warrant
Shares for which a Warrant is exercisable and the Exercise Price provided for in this Section
12:
(i) When Adjustments to Be Made. The adjustments required by this Section 12
shall be made whenever and as often as any specified event requiring an adjustment shall occur. For
the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of
business on the date of its occurrence. All calculations shall be made to the nearest cent and to
the nearest one-thousandth of a share, as the case may be.
(ii) Fractional Interests. In computing adjustments pursuant to this Section
12 (but subject to Section 14), fractional interests in Common Stock shall be
taken into account to the nearest 1/1000th of a share.
(iii) Adjustments Not Made as of Settlement Date. If the adjustments required by this
Section 12 have not been made by the Settlement Date, and the shares to be received by a
Warrant holder on settlement are not entitled to participate in the relevant distribution or
transaction (because they were not held on a related record date or otherwise), then the Company
will adjust the number of shares that the Company will deliver to such Warrant holder in respect of
the relevant Trading Day to reflect the relevant distribution or transaction.
(iv) When No Adjustment Required. No adjustment need be made under this Section
12 for any issuance of options, equity or equity-based grants or other securities pursuant to
the Companys Management Equity Incentive Program (as defined in the Plan).
(d) Reorganization, Reclassification, Merger or Consolidation of the Company.
(i) If a Reorganization Event shall occur, as a condition to the consummation of such
Reorganization Event, effective provisions shall be made in the certificate of incorporation or
articles of incorporation of the continuing or surviving or acquiring or resulting entity, or in
any contract or agreement providing for such Reorganization Event, so that so long as any Warrant
remains outstanding, each Warrant, upon the exercise thereof at any time after the consummation of
such Reorganization Event, shall be exercisable into (at an initial Exercise Price equal to the
Exercise Price in effect immediately prior to such Reorganization Event), in lieu of the Warrant
Shares issuable upon such
exercise prior to such consummation, solely the amount of cash,
securities or other property (Substituted Property) receivable pursuant to such
Reorganization Event by a holder of the number of shares of Warrant Shares for which a Warrant is
exercisable immediately prior to the effective time of such Reorganization Event assuming such
holder of Warrant Shares did not exercise its rights of election, if any, as to the kind or amount
of Substituted Property receivable upon such Reorganization Event (provided that, if the kind or
amount of Substituted Property receivable upon such Reorganization Event
is not the same for each share of Warrant Shares in respect of which such rights of election
shall not have been exercised (nonelecting share), then for the purposes of this
Section 12(d)(i) the kind and amount of Substituted Property receivable upon such
Reorganization Event for each nonelecting share shall be deemed to be the kind and amount so
receivable per share by a plurality of the electing shares). The provisions set forth herein
providing for adjustments and otherwise for the protection of the holders of Warrants shall
thereafter continue to be applicable on an as nearly equivalent basis as may be practicable and any
such continuing or surviving or acquiring or resulting entity shall expressly assume all of the
obligations of the Company set forth herein to the extent applicable.
(ii) For purposes hereof, a Reorganization Event shall mean any transaction which
the Company enters into constituting (i) a consolidation, merger, share exchange or similar
transaction of the Company with or into another person pursuant to which the Common Stock is
changed into, converted into or exchanged for cash, securities or other property (whether of the
Company or another person); (ii) a reorganization, recapitalization or reclassification or similar
transaction in which the Common Stock is exchanged for securities other than Common Stock (other
than in circumstances covered by Section 12(a)); or (iii) a statutory exchange of the
outstanding shares of Common Stock for securities of another person (other than in connection with
a consolidation, merger, share exchange or other similar transaction).
(e) Certain Limitations. Notwithstanding anything herein to the contrary, the Company
agrees not to enter into any transaction which, by reason of any adjustment hereunder, would cause
the Exercise Price to be less than the par value per share of Common Stock (if any) unless the
Company shall take such corporate action in order that the Company may validly and legally issue
fully paid and nonassessable shares of such Common Stock at such adjusted Exercise Price.
SECTION 13 Priority Adjustments, Further Actions. If any single action would require
adjustment of the Exercise Price pursuant to more than one subsection of Section 12 hereof,
only one adjustment shall be made and such adjustment shall be the amount of adjustment that has
the highest, relative to the rights and interests of the holders of the Warrants then outstanding,
absolute value.
SECTION 14 Fractional Shares. The Company shall not be required to issue fractional
shares of Common Stock upon the exercise of the Warrants if it elects, if otherwise permitted, to
make a cash payment in respect of any final fraction of a share upon such exercise (after
aggregating all fractional shares of each holder). If more than one Warrant shall be presented for
exercise at the same time by the same holder, the number of full shares of Common Stock that shall
be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of
shares of Common Stock purchasable on exercise of all of the Warrants so presented. If any fraction
of a share of Common Stock would, except for the provisions of this Section 14, be issuable
on the exercise of any Warrants (or specified portion thereof), the Company shall notify the
Warrant Agent in writing of the amount to be paid in lieu of the fraction of a share of Common
Stock and concurrently pay or provide to the Warrant Agent for payment to the Warrant holder an
amount in cash equal to the product of (i) such fraction of a share of Common Stock and (ii) the
Closing Price of a share of Common Stock for the Trading Day immediately preceding the date the
Warrant was presented for exercise pursuant to Section 8 hereof. The Warrant Agent shall
have no duty with respect to any payment for Warrant Shares under any Section of this Warrant
Agreement relating to the payment of fractional Warrant Shares unless and until the Warrant Agent
shall have received such notice and sufficient monies.
SECTION 15 Warrant Holders not Stockholders. Nothing contained in this Warrant
Agreement or in any of the Global Warrant Certificates shall be construed as conferring upon the
holders of any Warrant (solely in its capacity as a holder of a Warrant) (i) the right to vote or
to consent or to receive notice as stockholders in respect of the meetings of stockholders or the
election of directors of the Company or any other matter for which stockholders are entitled to
vote or to attend any such meetings or any other proceedings of the holders of Common Stock; (ii)
without limiting the provisions of Section 12
hereof, the right to receive any cash dividends, stock dividends, allotments or rights or
other distributions paid, allotted or distributed or distributable to the holders of Common Stock
prior to, or for which the relevant record date precedes, the date of the exercise of such Warrant;
or (iii) any other rights whatsoever as stockholders of the Company. The Warrant Agent shall have
no duty to monitor or enforce compliance with this provision.
SECTION 16 No Redemption. The Company shall not have any right to redeem any of the
Warrants evidenced hereby.
SECTION 17 Merger, Consolidation or Change of Name of Warrant Agent. Any person into
which the Warrant Agent may be merged or converted or with which it may be consolidated, or any
person resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a
party, or any person succeeding to all or substantially all of the corporate trust or agency
business of the Warrant Agent, shall be the successor to the Warrant Agent hereunder without the
execution or filing of any paper or any further act on the part of any of the parties hereto. If,
at the time such successor to the Warrant Agent by merger or consolidation succeeds to the agency
created by this Warrant Agreement, any of the Global Warrant Certificates shall have been
countersigned but not delivered, any such successor to the Warrant Agent may adopt the
countersignature of the original Warrant Agent; and if, at that time any of the Global Warrant
Certificates shall not have been countersigned, any such successor to the Warrant Agent may
countersign such Global Warrant Certificates either in the name of the predecessor Warrant Agent or
in the name of the successor Warrant Agent; and in all such cases such Global Warrant Certificates
shall have the full force and effect provided in the Global Warrant Certificates in this Warrant
Agreement. If at any time the name of the Warrant Agent shall be changed and at such time any of
the Global Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent
whose name has changed may adopt the countersignature under its prior name; and if at that time any
of the Global Warrant Certificates shall not have been countersigned, the Warrant Agent may
countersign such Global Warrant Certificates either in its prior name or in its changed name; and
in all such cases such Global Warrant Certificates shall have the full force provided in the Global
Warrant Certificates and in this Warrant Agreement.
SECTION 18 Warrant Agent. The Warrant Agent undertakes only the duties and obligations
expressly imposed by this Warrant Agreement upon the following terms and conditions, by all of
which the Company and the holders of Warrants, by their acceptance thereof, shall be bound:
(a) The Warrant Agent may rely conclusively and shall be protected in acting upon any order,
judgment, instruction, notice, demand, certificate, opinion or advice of counsel (including counsel
chosen by or who may be an employee of the Warrant Agent or one of its affiliates), statement,
instrument, report or other paper or document (not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and acceptability and of information
therein contained) which is believed by the Warrant Agent, in good faith, to be genuine and to be
signed or presented by the proper person or persons as set forth in Section 18(d).
(b) The Warrant Agent shall have no duties, responsibilities or obligations as the Warrant
Agent except those which are expressly set forth herein, and in any modification or amendment
hereof to which the Warrant Agent has consented in writing, and no duties, responsibilities or
obligations shall be implied or inferred.
(c) The statements contained herein and in the Global Warrant Certificates shall be deemed to
be statements of the Company only. The Warrant Agent assumes no responsibility for the correctness
of any of the same and shall not be required to verify the same.
(d) Whenever in the performance of its duties under this Warrant Agreement the Warrant Agent
deems it necessary or desirable that any fact or matter be proved or established by the Company
prior to taking, suffering or omitting to take any action hereunder, such fact or matter may be
deemed to be conclusively proved and established by a certificate signed by the Companys Chairman of the
Board, Chief Executive Officer, President or any Vice President and delivered to the Warrant Agent;
and in reliance upon such certificate, the Warrant Agent shall take any action or omit to take any
action authorized under the provisions of this Warrant Agreement. In the event the Warrant Agent
reasonably believes any ambiguity or uncertainty exists hereunder or in any notice, instruction,
direction, request or other communication, paper or document received by the Warrant Agent
hereunder, or is uncertain of any action to take hereunder, the Warrant Agent, may, following prior
written notice to the Company, refrain from taking any action, and shall be fully protected and
shall not be liable in any way to the Company or any other person or entity for refraining from
taking such action, unless the Warrant Agent receives written instructions signed by the Company
which eliminates such ambiguity or uncertainty to the reasonable satisfaction of the Warrant Agent.
(e) The Warrant Agent shall not be responsible for any failure of the Company to comply with
any of the covenants contained in this Warrant Agreement (including, without limitation, any
adjustment of the Exercise Price pursuant to Section 12 hereof, the authorization or
reservation of shares of Common Stock pursuant to Section 11 hereof, and the due execution
and delivery by the Company of this Warrant Agreement or any Global Warrant Certificate) or in the
Global Warrant Certificates to be complied with by the Company.
(f) The Warrant Agent may consult at any time with counsel satisfactory to it (who may be
counsel for the Company or an employee of the Warrant Agent) and the Warrant Agent shall incur no
liability or responsibility to the Company or any holder of any Warrant in respect of any action
taken, suffered or omitted by it hereunder and in accordance with the opinion or the advice of such
counsel.
(g) The Warrant Agent shall incur no liability or responsibility for any action taken in
reliance on any Global Warrant Certificate, Warrant Statement, certificate representing shares of
Common Stock, notice, resolution, waiver, consent, order, certificate, or other paper, document or
instrument believed by it to be genuine and to have been signed, sent or presented by the proper
party or parties. The Warrant Agent shall not be bound by any notice or demand, or any waiver,
modification, termination or revision of this Warrant Agreement or any of the terms hereof, unless
evidenced by a writing between and signed by, the Company and the Warrant Agent. The Warrant Agent
shall not be required to take instructions or directions except those given in accordance with this
Warrant Agreement.
(h) The Warrant Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself or by or through its attorneys, accountants, agents or
other experts, and the Warrant Agent will not be answerable or accountable for any act, default,
neglect or unintentional misconduct of any such attorneys or agents or for any loss to the Company
or the holders of the Warrants resulting from any such act, default, neglect or unintentional
misconduct, absent gross negligence, willful misconduct or bad faith (as each is determined by a
final non-appealable order of a court of competent jurisdiction) in the selection and continued
employment or engagement thereof.
(i) The Warrant Agent will not be under any duty or responsibility to insure compliance with
any applicable federal or state securities laws in connection with the issuance, transfer or
exchange of Global Warrant Certificates.
(j) The Warrant Agent shall not incur any liability for not performing any act, duty,
obligation or responsibility by reason of any occurrence beyond the control of the Warrant Agent
(including, without
limitation, any act or provision of any present or future law or regulation or
governmental authority, any act of God, war, civil disorder or failure of any means of
communication).
(k) The Company agrees to pay to the Warrant Agent reasonable compensation for all services
rendered by the Warrant Agent in the preparation, delivery, administration and execution of this
Warrant Agreement and the exercise and performance of its duties hereunder, to reimburse the
Warrant Agent for all reasonable expenses (including reasonable counsel fees), taxes (including
withholding taxes) and
governmental charges and other charges of any kind and nature actually incurred by the Warrant
Agent in the execution, delivery and performance of its responsibilities under this Warrant
Agreement and to indemnify the Warrant Agent and save it harmless against any and all liabilities,
including judgments, costs and counsel fees, for anything done or omitted by the Warrant Agent, or
any person acting on behalf of the Warrant Agent, in the execution, delivery and performance of its
responsibilities under this Warrant Agreement except as a result of its gross negligence, bad faith
or willful misconduct (each as determined by a final, non-appealable order of a court of competent
jurisdiction).
(l) The Warrant Agent, shall be under no obligation to institute any action, suit or legal
proceeding or to take any other action likely to involve expense unless the Company or one or more
holders of Global Warrant Certificates shall furnish the Warrant Agent with reasonable security and
indemnity for any costs and expenses which may be incurred, but this provision shall not affect the
power of the Warrant Agent to take such action as it may consider proper, whether with or without
any such security or indemnity. All rights of action under this Warrant Agreement or under any of
the Warrants may be enforced by the Warrant Agent without the possession of any of the Warrants or
the production thereof at any trial or other proceeding relative thereto, and any such action, suit
or proceeding instituted by the Warrant Agent shall be brought in its name as Warrant Agent and any
recovery of judgment shall be for the ratable benefit of the holders of the Warrants, as their
respective rights or interests may appear.
(m) Except as otherwise prohibited by applicable law, the Warrant Agent, and any member,
stockholder, director, officer or employee of the Warrant Agent, may buy, sell or deal in any of
the Warrants or other securities of the Company or become pecuniarily interested in any transaction
in which the Company may be interested, or contract with or lend money to the Company or otherwise
act as fully and freely as though it were not Warrant Agent under this Warrant Agreement. Nothing
herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for
any other legal entity.
(n) The Warrant Agent shall act hereunder solely as agent for the Company, and its duties
shall be determined solely by the express provisions hereof. The Warrant Agent shall not be liable
for anything which it may do or refrain from doing in connection with this Warrant Agreement,
except for its own gross negligence, bad faith or willful misconduct (each as determined by a
final, non-appealable order of a court of competent jurisdiction); provided that in no event shall
the Warrant Agent be liable for special, incidental, punitive, indirect or consequential loss or
damage of any kind whatsoever (including, without limitation, lost profits). Any liability of the
Warrant Agent under this Agreement, except for liability arising out of, or in connection with, the
gross negligence, bad faith or willful misconduct (each as determined by a final, non-appealable
order of a court of competent jurisdiction) of the Warrant Agent, will be limited to the amount of
aggregate fees paid by the Company to the Warrant Agent.
(o) The Warrant Agent shall not at any time be under any duty or responsibility to any holder
of any Warrant to make or cause to be made any adjustment of the Exercise Price or number of the
shares of Common Stock or other securities or property deliverable as provided in this Warrant
Agreement, or to determine whether any facts exist which may require any of such adjustments, or
with respect to the nature or extent of any such adjustments, when made, or with respect to the
method employed in making the same. The Warrant Agent shall not be accountable with respect to the
validity or value or the kind or amount of any shares of Common Stock or of any securities or
property which may at any time be issued or delivered upon the exercise of any Warrant or with
respect to whether any such shares of Common
Stock or other securities will when issued be validly
issued and fully paid and nonassessable, and makes no representation with respect thereto. The
Warrant Agent shall not be accountable to confirm or verify the accuracy or necessity of any
calculation.
(p) The Company agrees to perform, execute and acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts, instruments, and
assurances as may reasonably be required by the Warrant Agent for the carrying out or
performing of the provisions of this Agreement.
(q) The Warrant Agent shall have no responsibility or liability with respect to the validity
of this Agreement or with respect to the validity or execution of any Warrant (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible to
make or be liable for any adjustments required under any provision hereof, including but not
limited to Section 11 hereof, or responsible for the manner, method or amount of any such
adjustment or the ascertaining of the existence of facts that would require any such adjustment;
nor shall it by act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock to be issued pursuant to this Agreement
or any Warrant or as to whether any shares of Common Stock will, when issued, be valid and fully
paid and nonassessable.
(r) Notwithstanding anything to the contrary contained herein, the Company shall make all
determinations with respect to Cashless Exercises, and the Warrant Agent shall have no duty or
obligation to investigate or confirm whether the Company determination regarding the number of
Shares to be issued in the event of a Cashless Exercise is accurate or correct. Notwithstanding
anything to the contrary contained herein, the Warrant Agent shall also have no duty or obligation
to investigate or confirm whether any determination of the Exercise Amount under Section 8
is correct or accurate.
(s) No provision of this Agreement shall require the Warrant Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights, except to the extent otherwise expressly set forth herein.
(t) Notwithstanding the foregoing, nothing in this Section 18 shall relieve the
Warrant Agent from any liability arising from the Warrant Agents transfer of any Warrant without
obtaining confirmation from the Company as described in Section 6 hereof.
(u) All rights and obligations contained in this Section 18 and Section 19
hereof shall survive the termination of this Warrant Agreement and the resignation, replacement or
removal of the Warrant Agent.
SECTION 19 Expenses. All expenses incident to the Companys performance of or
compliance with this Warrant Agreement will be borne by the Company, including, without limitation:
(i) all expenses of printing Global Warrant Certificates; (ii) messenger and delivery services and
telephone calls; (iii) all fees and disbursements of counsel for the Company; (iv) all fees and
disbursements of independent certified public accountants or knowledgeable experts selected by the
Company; and (v) the Companys internal expenses (including, without limitation, all salaries and
expenses of their officers and employees performing legal or accounting duties).
SECTION 20 Change of Warrant Agent.
(a) If the Company terminates the Warrant Agent or the Warrant Agent shall become incapable of
acting as Warrant Agent or shall resign as provided below, the Company shall appoint a successor to
such Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days
after it has terminated the Warrant Agent or it has been notified in writing of a resignation or
incapacity by the Warrant Agent, then any holder of a Warrant may apply to any court of competent
jurisdiction for the appointment of a successor to the Warrant Agent. Pending appointment of a
successor to the Warrant Agent, either by the Company or by such a court, the duties of the Warrant
Agent shall be carried out by
the Company. Any successor Warrant Agent, whether appointed by the
Company or by such a court, shall be a bank or trust company, in good standing, incorporated under
the laws of any state or of the United States of America. As soon as practicable after appointment
of the successor Warrant Agent, the Company shall cause written notice of the change in the Warrant
Agent to be given to each of the holders of the Warrants at such holders address appearing on the
Warrant Register. After appointment, the successor to the Warrant Agent shall be vested with the
same powers, rights, duties and responsibilities as
if it had been originally named as Warrant Agent without further act or deed. The former
Warrant Agent shall deliver and transfer to the successor to the Warrant Agent any property at the
time held by it hereunder and execute and deliver any further assurance, conveyance, act or deed
necessary for the purpose. Failure to give any notice provided for in this Section 20,
however, or any defect therein, shall not affect the legality or validity of the appointment of a
successor to the Warrant Agent.
(b) The Warrant Agent may resign at any time and be discharged from the obligations hereby
created by so notifying the Company in writing at least 30 days in advance of the proposed
effective date of its resignation. If no successor Warrant Agent accepts the engagement hereunder
by such time, the Company shall act as Warrant Agent.
SECTION 21 Notices to the Company and Warrant Agent. Any notice or demand authorized
or permitted by this Warrant Agreement to be given or made by the Warrant Agent or by any holder of
the Warrants to or on the Company to be effective shall be in writing (including by facsimile), and
shall be deemed to have been duly given or made when delivered by hand, or two (2) business days
after being delivered to a recognized courier (whose stated terms of delivery are two (2) business
days or less to the destination of such notice), or five (5) days after being deposited in the
mail, first class and postage prepaid or, in the case of facsimile notice, when received, addressed
as follows (until another address or facsimile number is filed in writing by the Company with the
Warrant Agent):
Visteon Corporation
One Village Center Drive
Van Buren Township, Michigan 48111
Facsimile: (734) 710-7112
Attention: Chief Financial Officer
One Village Center Drive
Van Buren Township, Michigan 48111
Facsimile: (734) 710-7112
Attention: Chief Financial Officer
with a copy (which shall not constitute notice) to:
Pachulski Stang Ziehl & Jones LLP
919 North Market Street, 17th Floor
Wilmington, Delaware 19899-8705
Facsimile: (302) 652-4400
Attention: Laura Davis Jones
James E. ONeill
Mark M. Billion
919 North Market Street, 17th Floor
Wilmington, Delaware 19899-8705
Facsimile: (302) 652-4400
Attention: Laura Davis Jones
James E. ONeill
Mark M. Billion
and
Kirkland & Ellis LLP
300 North LaSalle
Chicago, Illinois 60654
Facsimile: (312) 862-2200
Attention: James H. M. Sprayregen, P.C.
James J. Mazza, Jr.
Gerald T. Nowak, P.C.
Howard Norber
300 North LaSalle
Chicago, Illinois 60654
Facsimile: (312) 862-2200
Attention: James H. M. Sprayregen, P.C.
James J. Mazza, Jr.
Gerald T. Nowak, P.C.
Howard Norber
and
Kirkland & Ellis LLP
601 Lexington Avenue
New York, New York 10022
Facsimile: (212) 446-4900
Attention: Marc Kieselstein, P.C.
Brian S. Lennon
601 Lexington Avenue
New York, New York 10022
Facsimile: (212) 446-4900
Attention: Marc Kieselstein, P.C.
Brian S. Lennon
Any notice or demand pursuant to this Warrant Agreement to be given by the Company or by any
holder(s) of the Warrants to the Warrant Agent shall be sufficiently given if sent in the same
manner as notices or demands are to be given or made to or on the Company (as set forth above) to
the Warrant Agent at the Warrant Agent Office as follows (until another address is filed in writing
by the Warrant Agent with the Company):
[___]
SECTION 22 Supplements and Amendments. The Company and the Warrant Agent may from
time to time supplement or amend this Warrant Agreement (a) without the approval of any holders of
Warrants in order to cure any ambiguity or to correct or supplement any provision contained herein
that may be defective or inconsistent with any other provision herein, or to make any other
provisions in regard to matters or questions arising hereunder that the Company may deem necessary
or desirable and that shall not adversely affect the rights or interests of the holders of Warrants
or (b) with the prior written consent of holders of the Warrants exercisable for a majority of the
shares of Common Stock then issuable upon exercise of the Warrants then outstanding; provided,
however, that the consent of each holder of a Warrant affected shall be required for any amendment
of this Warrant Agreement that would (i) increase the Exercise Price or decrease the number of
shares of Common Stock purchasable upon exercise of the Warrants, except that such consent shall
not be required for any adjustment to the Exercise Price or the number of shares of Common Stock
purchasable if made pursuant to the provisions of Section 12 hereof, (ii) alter the
Companys obligation to issue Warrant Shares upon exercise of the underlying Warrant (other than
pursuant to adjustments otherwise provided for in this Agreement, including the adjustments
provided for in Section 12 hereof), (iii) change the Expiration Date of the Warrants to an
earlier date, (iv) waive the application of the adjustment provisions contained in Section
12 in connection with any events to which such provisions apply or otherwise modify the
adjustment provisions contained in Section 12 in a manner that would have an adverse
economic impact on the holders of Warrants, or (v) treat such holder differently in an adverse way
from any other holder of Warrants. The Warrant Agent may, but shall not be obligated to, execute
any amendment or supplement which affects the rights or increases the duties or obligations of the
Warrant Agent.
SECTION 23 Successors. All the covenants and provisions of this Warrant Agreement by
or for the benefit of the Company, the holders of the Warrants or the Warrant Agent shall bind and
inure to the benefit of their respective successors and assigns hereunder.
SECTION 24 Termination. This Warrant Agreement shall terminate at 5:00 p.m., New York
City time, on the Expiration Date (or, at 5:00 p.m., New York City time, on the Settlement Date
with respect to any Warrant Exercise Notice delivered prior to 5:00 p.m., New York City time, on
the Expiration Date). Notwithstanding the foregoing, this Warrant Agreement will terminate on such
earlier date on which all outstanding Warrants have been exercised. Termination of this Warrant
Agreement shall not relieve the Company or the Warrant Agent of any of their obligations arising
prior to the date of such termination or
in connection with the settlement of any Warrant exercised
prior to 5:00 p.m., New York City time, on the Expiration Date.
SECTION 25 Governing Law. This Warrant Agreement and each Warrant issued hereunder
shall be deemed to be a contract made under the laws of the State of New York and for all purposes
shall be governed by and construed in accordance with the laws of the State of New York without
giving effect to conflict of laws principles.
SECTION 26 Benefits of this Warrant Agreement. This Warrant Agreement shall be for the
sole and exclusive benefit of the Company, the Warrant Agent and the holders of the Warrants, and
nothing in this Warrant Agreement shall be construed to give to any person other than the Company,
the Warrant Agent and the holders of the Warrants any legal or equitable right, remedy or claim
under this Warrant Agreement. Each holder, by acceptance of a Warrant, agrees to all of the terms
and provisions of this Warrant Agreement applicable thereto.
SECTION 27 Counterparts. This Warrant Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.
SECTION 28 Further Assurances. From time to time on and after the date hereof, the
Company shall deliver or cause to be delivered to the Warrant Agent such further documents and
instruments and shall do and cause to be done such further acts as the Warrant Agent shall
reasonably request (it being understood that the Warrant Agent shall have no obligation to make
such request) to carry out more effectively the provisions and purposes of this Warrant Agreement,
to evidence compliance herewith or to assure itself that it is protected hereunder.
SECTION 29 Entire Agreement. This Warrant Agreement and the Global Warrant
Certificates constitute the entire agreement of the Company, the Warrant Agent and the holders of
the Warrants with respect to the subject matter hereof and supersede all prior agreements and
undertakings, both written and oral, among the Company, the Warrant Agent and the holders of the
Warrants with respect to the subject matter hereof. Except as expressly made herein, the Company
makes no representation, warranty, covenant or agreement with respect to the Warrants.
SECTION 30 Severability. Wherever possible, each provision of this Warrant Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Warrant Agreement;
provided, however, that if such excluded or added provision shall materially affect the rights,
immunities, duties or obligations of the Warrant Agent, the Warrant Agent shall be entitled to
resign immediately upon notification in writing to the Company.
SECTION 31 Force Majeure. In no event shall the Warrant Agent be responsible or liable
for any failure or delay in the performance of its obligations under this Agreement arising out of
or caused by, directly or indirectly, forces beyond its reasonable control, including without
limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software or hardware) services.
IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to be duly executed,
as of the day and year first above written.
VISTEON CORPORATION |
||||
By: | ||||
Name: | ||||
Title: | ||||
[___],
as Warrant Agent
as Warrant Agent
By: | ||||
Name: | ||||
Title: | ||||
21
EXHIBIT A
FORM OF GLOBAL WARRANT CERTIFICATE
FORM OF FACE OF GLOBAL WARRANT CERTIFICATE
VOID AFTER 5:00 P.M., NEW YORK CITY TIME, ON [_____]
THE SALE, ASSIGNMENT, PLEDGE, ENCUMBRANCE, EXCHANGE OR OTHER TRANSFER OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE IS SUBJECT TO THE TERMS OF THE WARRANT AGREEMENT, DATED AS OF [___], 2010
(THE WARRANT AGREEMENT), BETWEEN THE ISSUER OF THIS CERTIFICATE AND THE WARRANT AGENT
NAMED THEREIN. BY ACCEPTING ANY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE, THE
RECIPIENT OF SUCH SECURITIES SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL OF THE
PROVISIONS OF THE WARRANT AGREEMENT. A COPY OF THE WARRANT AGREEMENT MAY BE OBTAINED UPON WRITTEN
REQUEST TO THE CORPORATE SECRETARY OF THE ISSUER OF THIS CERTIFICATE.
NO. W-1
|
WARRANT TO PURCHASE | |
___SHARES OF COMMON | ||
STOCK |
VISTEON CORPORATION
WARRANT TO PURCHASE COMMON STOCK, PAR VALUE $0.01 PER SHARE
CUSIP # [_____]
DISTRIBUTION DATE: [_____], 2010
This Global Warrant Certificate certifies that Cede & Co., or its registered assigns, is the
registered holder of a Warrant (this Warrant) of VISTEON CORPORATION, a Delaware
corporation (the Company), to purchase the number of shares of common stock, par value
$0.01 per share (Common Stock), of the Company set forth above (as adjusted from time to
time in accordance with the terms of the Warrant Agreement). This Warrant expires at 5:00 p.m., New
York City time on [___] (the Expiration Date) and entitles the holder upon exercise at
any time, and from time to time, in whole or in part, on or after the date of this Warrant
Certificate and prior to the Expiration Date to purchase from the Company up to the number of fully
paid and nonassessable shares of Common Stock set forth above at an exercise price of $9.66 per
share of Common Stock (as adjusted from time to time in accordance with the terms of the Warrant
Agreement, the Exercise Price). The Exercise Price and the number of shares of Common
Stock purchasable upon exercise of this Warrant are subject to adjustment upon the occurrence of
certain events as set forth in the Warrant Agreement.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS GLOBAL WARRANT CERTIFICATE SET
FORTH ON THE REVERSE HEREOF. SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS
THOUGH FULLY SET FORTH AT THIS PLACE.
This Global Warrant Certificate shall not be valid unless countersigned by the Warrant Agent.
All capitalized terms used herein and not defined herein shall have the meanings assigned to
them in the Warrant Agreement.
22
IN WITNESS WHEREOF, the Company has caused this Global Warrant Certificate to be executed by
its duly authorized officers as of the date below set forth.
Dated:
, 2010
VISTEON CORPORATION |
||||
By: | ||||
Name: | ||||
Title: |
Countersigned:
[___],
as Warrant Agent
as Warrant Agent
By: | ||||
Name: | ||||
Title: | ||||
Address of Registered Holder for Notices (until changed in accordance with the Warrant Agreement):
FORM OF REVERSE OF GLOBAL WARRANT CERTIFICATE
The Warrant evidenced by this Global Warrant Certificate is a part of a duly authorized
issue of Warrants to purchase up to shares of Common Stock issued pursuant to the Warrant
Agreement. The Warrant Agreement is hereby incorporated by reference herein and made a part of this
instrument and is hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Warrant Agent, the Company and the registered
holders of the Warrants. All capitalized terms used but not defined herein shall have the meanings
assigned to them in the Warrant Agreement.
Upon due presentment for registration of transfer of the Warrant and surrender of this Global
Warrant Certificate at the office of the Warrant Agent designated for such purpose, a new Global
Warrant Certificate or Global Warrant Certificates of like tenor and evidencing in the aggregate a
like number of Warrants shall be issued to the transferee in exchange for this Global Warrant
Certificate, subject to the limitations set forth in the Warrant Agreement, without charge except
for any applicable tax or other charge.
Subject to Section 14 of the Warrant Agreement, the Company shall not be required to issue
fractional shares of Common Stock.
No Warrants may be sold, exchanged or otherwise transferred in violation of the Securities Act
state securities laws or other applicable law. The Warrant does not entitle the registered holder
thereof to any of the rights of a stockholder of the Company.
The Company and Warrant Agent may deem and treat the registered holder hereof as the absolute
owner of this Global Warrant Certificate (notwithstanding any notation of ownership or other
writing hereon made by anyone other than the Company or the Warrant Agent) for the purpose of any
exercise hereof and for all other purposes, and neither the Company nor the Warrant Agent shall be
affected by any notice to the contrary.
This Global Warrant Certificate is held by The Depository Trust Company (the
Depository) or its nominee in custody for the benefit of the beneficial owners hereof,
and is not transferable to any Person under any circumstances except that (i) this Global Warrant
Certificate may be transferred in whole pursuant to Section 6(e) of the Warrant Agreement (as
hereinafter defined) and (ii) this Global Warrant Certificate may be delivered to the Warrant Agent
for cancellation pursuant to Sections 6(g) and 8(n) of the Warrant Agreement.
Unless this Global Warrant Certificate is presented by an authorized representative of the
Depository to the Company or the Warrant Agent for registration of transfer, exchange or payment
and any certificate issued is registered in the name of Cede & Co., or such other entity as is
requested by an authorized representative of the Depository (and any payment hereon is made to Cede
& Co. or to such other entity as is requested by an authorized representative of the Depository),
any transfer, pledge or other use hereof for value or otherwise by or to any Person is wrongful
because the registered owner hereof, Cede & Co., has an interest herein.
No registration or transfer of the securities issuable pursuant to the Warrant will be
recorded on the books and records of the Company or the Warrant Agent until the provisions set
forth in the Warrant Agreement have been complied with.
In the event of any conflict or inconsistency between this Global Warrant Certificate and the
Warrant Agreement, the Warrant Agreement shall control.
EXHIBIT B-1
EXERCISE FORM FOR HOLDERS
HOLDING BOOK-ENTRY WARRANTS
HOLDING BOOK-ENTRY WARRANTS
(To be executed upon exercise of the Warrant(s))
The undersigned hereby irrevocably elects to exercise the right, represented by the Book-Entry
Warrant(s), to purchase shares of Common Stock of Visteon Corporation and (check one or both):
o | herewith tenders in payment for ________ shares of Common Stock an amount of $________ by certified or official bank check made payable to the order of Visteon Corporation or by wire transfer in immediately available funds to an account arranged with Visteon Corporation; and/or | ||
o | herewith tenders the Warrant(s) for ________ shares of Common Stock pursuant to the cashless exercise provision of Section 8 (h) of the Warrant Agreement. |
Please check below if this exercise is contingent upon the consummation of a Reorganization
Event as provided in Sections 8(i) and 12(d) of the Warrant Agreement:
o | This exercise is being made in connection with a Reorganization Event; provided, that in the event the Reorganization Event shall not be consummated, then this exercise shall be deemed to be revoked. |
The undersigned requests that a statement representing the shares of Common Stock issued upon
exercise of the Warrant(s) be delivered in accordance with the instructions set forth below.
Dated: , 20
THIS EXERCISE NOTICE MUST BE DELIVERED TO THE WARRANT AGENT, PRIOR TO 5:00 P.M., NEW YORK CITY
TIME, ON THE EXPIRATION DATE.
ALL CAPITALIZED TERMS USED HEREIN BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASSIGNED TO THEM
IN THE WARRANT AGREEMENT.
THE UNDERSIGNED REQUESTS THAT A STATEMENT REPRESENTING THE SHARES OF COMMON STOCK BE DELIVERED AS
FOLLOWS:
Name:
|
||||
(Please Print) | ||||
Address:
|
||||
Telephone:
|
||||
Fax:
|
||||
Social Security Number or Other Taxpayer Identification Number (if applicable):
IF SAID NUMBER OF SHARES SHALL NOT BE ALL THE SHARES PURCHASABLE UNDER THE WARRANT(S), THE
UNDERSIGNED REQUESTS THAT NEW BOOK-ENTRY WARRANT(S) REPRESENTING THE BALANCE OF SUCH WARRANT(S)
SHALL BE REGISTERED AS FOLLOWS:
Name: |
||||
(Please Print) | ||||
Address:
|
||||
Telephone:
|
||||
Fax:
|
||||
Social Security Number or Other Taxpayer Identification Number (if applicable):
Signature:
|
||||
Name:
|
||||
Capacity in which Signing:
|
||||
SIGNATURE GUARANTEED BY:
|
||||
Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion
Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion
Signature Program.
EXHIBIT B-2
EXERCISE FORM FOR HOLDERS
HOLDING WARRANTS THROUGH THE DEPOSITORY TRUST COMPANY
HOLDING WARRANTS THROUGH THE DEPOSITORY TRUST COMPANY
TO BE COMPLETED BY DIRECT PARTICIPANT
IN THE DEPOSITORY TRUST COMPANY
(To be executed upon exercise of the Warrant(s))
IN THE DEPOSITORY TRUST COMPANY
(To be executed upon exercise of the Warrant(s))
The undersigned hereby irrevocably elects to exercise the right, represented by Global Warrant
Certificate No. ___ held for its benefit through the book-entry facilities of The Depository Trust
Company (the Depository), to purchase ___ shares of Common Stock of Visteon Corporation and (check
one or both):
o | herewith tenders in payment for such shares an amount of $___ by certified or official bank check made payable to the order of Visteon Corporation or by wire transfer in immediately available funds to an account arranged with Visteon Corporation; and/or | ||
o | herewith tenders the Warrant(s) for ___ shares of Common Stock pursuant to the cashless exercise provision of Section 8 (h) of the Warrant Agreement. |
Please check below if this exercise is contingent upon the consummation of a Reorganization
Event as provided in Sections 8(i) and 12(d) of the Warrant Agreement:
o | This exercise is being made in connection with a Reorganization Event; provided, that in the event the Reorganization Event shall not be consummated, then this exercise shall be deemed to be revoked. |
The undersigned requests that the shares of Common Stock issuable upon exercise of the
Warrant(s) be in registered form in the authorized denominations, registered in such names and
delivered, all as specified in accordance with the instructions set forth below; provided,
that if the shares of Common Stock are evidenced by global securities, the shares of Common Stock
shall be registered in the name of the Depository or its nominee.
Dated: , 20
THIS EXERCISE NOTICE MUST BE DELIVERED TO THE WARRANT AGENT, PRIOR TO 5:00 P.M., NEW YORK CITY
TIME, ON THE EXPIRATION DATE. THE WARRANT AGENT SHALL NOTIFY YOU (THROUGH THE CVISTEONING SYSTEM)
OF (1) THE WARRANT AGENTS ACCOUNT AT THE DEPOSITORY TO WHICH YOU MUST DELIVER YOUR WARRANT(S) ON
THE EXERCISE DATE AND (2) THE ADDRESS, PHONE NUMBER AND FACSIMILE NUMBER WHERE YOU CAN CONTACT THE
WARRANT AGENT AND TO WHICH WARRANT EXERCISE NOTICES ARE TO BE SUBMITTED.
ALL CAPITALIZED TERMS USED HEREIN BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASSIGNED TO THEM
IN THE WARRANT AGREEMENT.
NAME OF DIRECT PARTICIPANT IN THE DEPOSITORY:
Account Name |
||||
(Please Print) | ||||
Address:
|
||||
Contact Name:
|
||||
Telephone:
|
||||
Fax:
|
||||
Social Security Number or Other Taxpayer Identification Number (if applicable):
Account from which Warrant(s) are Being Delivered:
Depository Account Number:
WARRANT HOLDER DELIVERING WARRANT(S), IF OTHER THAN THE DIRECT PARTICIPANT: Name:
Name:
|
||||
Contact Name:
|
||||
Address:
|
||||
Telephone:
|
||||
Fax:
|
||||
Account from which the Shares of Common Stock are to be Credited:
Depository Account Number:
FILL IN FOR DELIVERY OF THE COMMON STOCK, IF OTHER THAN TO THE PERSON DELIVERING THIS WARRANT
EXERCISE NOTICE:
Name:
|
||||
(Please Print) | ||||
Address:
|
||||
Contact Name:
|
||||
Telephone:
|
||||
Fax:
|
||||
Social Security Number or Other Taxpayer Identification Number (if applicable):
Signature:
|
||||
Name:
|
||||
Capacity in which Signing:
|
||||
Signature Guaranteed By:
|
||||