Auto Supplier Visteon Files for Bankruptcy
By Michelle Krebs May 28, 2009By Michelle Krebs
DETROIT -- Auto parts supplier Visteon Corp., as long anticipated it would, filed for Chapter 11 bankruptcy protection Thursday.
Visteon, one of the world's largest auto-parts suppliers, was created from Ford Motor Co. parts operations and employs 31,000 people in 27 countries.
Visteon follows in the footsteps of Delphi Corp., formed from General Motors' parts operations. Delphi has been in Chapter 11 bankruptcy for three and a half years.
Like all automotive suppliers, Visteon has struggled with the dramatic fall-off in vehicle sales, which have prompted its automaker customers to slash production.
Visteon said it submitted its Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware. Visteon UK Ltd. separately filed for bankruptcy protection last month and closed three British plants.
"During the reorganization period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment," said Donald J. Stebbins, chairman and chief executive, in a statement.
According to its filings, the company has total liabilities of $3.96 billion and total assets of $4.56 billion. Cash and short-term investments total $625 million. The company expects to continue running and plans to fund operations with cash on hand, cash flow from its operations and with debtor-in-possession funding from its former parent and largest customer Ford. Nearly a third of Visteon's sales are to Ford.
LEAVE A COMMENT
IVA bankruptcy
ADD A COMMENT