UPDATE 1-Unsecured creditors seek to end Visteon's exclusivity

* Say latest reorg plan again aligns co with term lenders

* Say timing of amended plan give it an unfair head start

April 1 (Reuters) - Unsecured creditors of bankrupt auto parts maker Visteon Corp VSTNQ.PK have asked the court to terminate the company's exclusivity, or the period in which it has the sole right to propose a restructuring plan.

The official committee of unsecured creditors said in a filing on Wednesday that Visteon had again solely aligned itself with its term lenders in the latest amended reorganization plan and that the committee was looking to support alternative plans to maximize its recovery.

"Competing plans are poised to be filed, and should be parallel-tracked. The official committee could be a proponent of the rights offering plan or submit a plan predicated on reinstatement (partially, or in full) of the term loan," the unsecured creditors said.

Term loans would be rendered unimpaired under both these alternative plans and would be eliminated as a voting class, they said.

The timing of the filing of the amended plan seems designed to give it an unfair head start, which will likely lead to a protracted confirmation battle, the committee said.

The committee added that terminating exclusivity and tracking plans side by side promotes an efficient reorganization rather than allowing Visteon and its term lenders' amended plan having a head start.

The latest plan converts the company's $1.629 billion secured debt to 85 percent of the company's equity. Holders of Visteon's 12.25 percent senior notes would receive 6 percent of the company's equity and the remaining equity would be distributed among holders of other unsecured notes and non-trade claims.

Visteon, which was spun off from Ford in 2000, filed for bankruptcy protection last June. It was one of the biggest casualties of the global auto industry crisis that forced General Motors Corp [GM.UL] and Chrysler to restructure in bankruptcy court and saddled other automakers and suppliers with mounting losses.

It relies on Ford for nearly 30 percent of its sales.

The case is In re Visteon Corp, U.S. Bankruptcy Court, District of Delaware, No. 09-11786. (Reporting by Santosh Nadgir in Bangalore; Editing by Jarshad Kakkrakandy)