Visteon Files Chapter 11 Bankruptcy Protection

In the USA, giant parts supplier Visteon Corp. – faced with severely reduced demand from automakers, has filed for Chapter 11 bankruptcy protection. According to the Associated Press, Visteon filed its petition in the US Bankruptcy Court for the District of Delaware. Last month, it’s Visteon UK subsidiary filed for bankruptcy protection and closed three UK plants.

With its first quarter financials, Visteon showed total liabilities of $3.96 billion and total assets of $4.56 billion. “During the reorganization period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment,” Donald Stebbins, chairman and CEO, said in a statement published by the AP.

Visteon, which in 2000 separated from Ford to become a stand alone company, said Ford has committed to support debtor-in-possession financing for Visteon’s restructuring. Visteon has also applied for court permission to continue serving customers and paying employees and vendors. (Tire Review/Akron)