* Company cuts more than $2 billion in debt
* Owned by hedge funds that swapped bonds for ownership
WILMINGTON, Del., Oct 1 (Reuters) - Auto parts maker Visteon Corp VSTNQ.PK said on Friday it had emerged from 16 months in bankruptcy protection with $2 billion less debt and a revitalized business.
The reorganization of Visteon, which makes air conditioning and electronics systems, caps a two-year stretch in which dozens of U.S. automotive companies collapsed into bankruptcy.
Chrysler, General Motors, Delphi Corp and Lear Corp (LEA.N) used Chapter 11 bankruptcy protection to remove crushing debt, shed obligations and close underutilized factories.
Visteon, a former unit of Ford Motor Co (F.N), emerges with far less debt and in the hands of investors who held its bonds, including Goldman Sachs Group Inc (GS.N) and hedge funds Oak Hill Advisors and Silver Point Capital.
The Van Buren, Michigan-based company filed for bankruptcy protection in May 2009, and at the time it was not clear it would avoid liquidation.
A year later, after closing weaker factories while the auto industry recovered and financial markets rallied, the company was being fought over by lenders, bondholders, shareholders and rival Johnson Controls Inc (JCI.N).
The bonds that traded for pennies last year were worth more than par as the company prepared to exit bankruptcy and even shareholders, the last to receive anything in a Chapter 11, got a recovery.
The company sold $1.25 billion of new shares to bondholders to repay its pre-bankruptcy bank loans. In addition, it borrowed $700 million for paying off debts and to fund operations after bankruptcy.
The case is In re Visteon Corp, U.S. Bankruptcy Court, District of Delaware, No. 09-11786. (Reporting by Tom Hals)