Michigan-based troubled supplier Visteon Corporation (OTC:VSTNQ) has rejected Johnson Controls' (NYSE:JCI) bid to acquire some of its businesses. The company, trying to get out of the bankruptcy protection, looks in no hurry to sell its operations and in this case it looks, Visteon is more aware of its businesses which are going to perform good in future.

Visteon represents an exceptional case where a company's profit-making abilities come in the way of the company exiting the bankruptcy protection. With Visteon posting profits in the first quarter of 2010, all stakeholders have become interested in owning the company as much as possible. Hence, even after filing three reorganized plans, the company remains under Chapter 11 protection. However in this case, the board of directors gave a unanimous opinion, “has studied your proposal carefully and has unanimously concluded that our stakeholders, as well as our customers and employees, are best served by moving forward with our previously announced plan of reorganization to emerge from bankruptcy as a strong, independent, stand-alone company”.

The board concluded that the sale to Johnson Controls could actually elongate Visteon's stay in bankruptcy. In addition, the board also noted that there are limited chances of material difference coming to recoveries for the creditors or equity holders.

A trimmed down Visteon Corporation is certainly capable of cruising along on itself but the real question for the company is the timing to exit from bankruptcy protection. Visteon's stock is currently trading down five per cent.