Visteon Can End Most Health Insurance for Retirees (would affect about 7,000 workers, retirees)

[Purveyor]

By Steven Church

Dec. 10 (Bloomberg) -- Visteon Corp., the bankrupt auto- parts maker once owned by Ford Motor Co., won court permission to quit paying health and life insurance costs for most of its retired workers.

U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware, today overruled objections from union workers, agreeing with Visteon’s claim that it couldn’t afford the program, which may cost about $31 million this year.

The company said previously that the measures would affect about 7,000 current workers and retirees. Sontchi ruled that only about 110 current workers are entitled to the benefits because of a contract.

The end to the benefits will take months, as Visteon gives notice to retirees and arranges temporary alternative insurance, said company attorney Steven D. McCormick of the law firm Kirkland & Ellis.

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BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20601103&sid=a4UHfExux5X0

[Kolesar]

1. Medicaid for age 55 to 65 sounds quite necessary now...eom