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Visteon files for Chapter 11 protection for U.S. operations

Global automotive supplier Visteon Corp. (Van Buren Twp., MI) announced that it filed for Chapter 11 protection in the U.S. Bankruptcy Court for Delaware on May 27, emphasizing that it was continuing to operate during the reorganization and that none of its subsidiaries or joint ventures outside the U.S. are included in the filing.

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Visteon files for Chapter 11 protection for U.S. operations

The company supplies climate systems, interior components and assemblies, and lighting and electronic products to a wide spectrum of vehicle suppliers, through about 31,000 employees working at its facilities in 27 countries around the globe. Its in-house plastics processing includes injection molding, thermoforming, and blowmolding, plus it is a customer of many custom molders and processors.

In a prepared statement, Visteon chairman and CEO Donald J. Stebbins said the company is taking the Chapter 11 step to maximize the long-term value of the company. During the reorganization, he said, “... we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment. The results of these actions, combined with our innovative products and excellent product quality, will allow Visteon to emerge a financially sound and well-positioned company.”

Visteon says it expects to fund operations with its U.S. cash balance, operational cash flow, and a debtor-in-possession facility. Also, Ford Motor Co., which spun off Visteon in 2000, has committed to support debtor-in-possession financing of Visteon restructuring to ensure long-term supply continuity. The company says other global customers have also expressed support.

Along with the Chapter 11 filing, Visteon also filed what are called “first day motions” that are meant to ensure a smooth transition to Chapter 11 status. These request authority to continue serving customers, honoring customer programs, paying critical suppliers, and honoring employee obligations, among other things. [email protected]

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