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Visteon Sued Over Headquarters Bond Payments
A breach of contract lawsuit filed on Tuesday claims Visteon Corp. is liable to cover a shortfall of more than $36 million on bonds issued to help fund the company's headquarters outside Detroit.
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A breach of contract lawsuit filed on Tuesday claims Visteon Corp. is liable to cover a shortfall of more than $36 million on bonds issued to help fund the company's headquarters outside Detroit.
Van Buren Township, in which the 880,000 sq-ft building is located, issued bonds 12 years ago for the facility and surrounding 287-acre Visteon Village development.
The township says its dispute with Visteon dates to the company's chapter 11 bankruptcy in 2009 and restructuring a year later. At the time, the township valued the property at $165 million. But both parties later agreed the complex was worth only $60 million. The drop in taxable value has hurt the township's ability to cover payments on its bonds.
The township complains that Visteon has refused to discuss the problem. It wants Visteon to assist in making bond payments. In the meantime, the township says it is exploring such options as a budget cut, special millage or a possible default on the debt.
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