The Local Development Finance Authority met Tuesday afternoon (Sept. 11) and voted to ask the Van Buren Township Board of Trustees to meet with Visteon to settle expected bond payment shortfalls within 21 days or to file suit.
LDFA member David Tyler, who works for Wayne County, abstained from the vote “to avoid potential conflict”.
Terry Carroll, VBT Director of Planning and Economic Development, said a Crain’s Business article published Aug. 20 about the current state of Visteon said some are concerned because it looks like much of Visteon is being sold off.
Out of that came the idea that a resolution from the LDFA should be considered requesting that the township board ask Visteon to start negotiations to ask what they meant by the bankruptcy settlement wording. Visteon had vowed to make up shortfall for the LDFA bonds for Visteon Village.
VBT wants to put its claims against any of the Visteon assets now being sold.
“This basically is our recommendation for a plan of action for the township to move forward and take what steps are necessary to try to keep the township whole in light of recent events with Visteon,” said LDFA chairman Michael Dotson.
“There are timelines included and a specific request as to some kind of legal action moving forward,” he said.
The township is expected to be some $52 million short in funds to pay the Visteon Village bonds in the next few years. The full faith and credit of VBT guarantees the bonds.
The LDFA recommendation is expected to be on the Sept. 18 agenda of the VBT Board of Trustees for consideration.