Troubled autoparts supplier Visteon and some of its US subsidiaries have voluntarily filed petitions for relief under Chapter 11 of the US Bankruptcy Code, which permits the company to reorganise under US bankruptcy laws.
The petitions were filed in the US Bankruptcy Court for the District of Delaware. No Visteon subsidiaries or joint ventures outside the US were part of the filing.
Donald J Stebbins, chairman and chief executive officer of Visteon, said: 'During the reorganisation period, 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 will allow Visteon to emerge a financially sound and well-positioned company.'
Visteon expects to fund its operations with its US cash balance, cash flows from operations and a debtor-in-possession facility – a special form of financing provided for companies in financial distress or under Chapter 11 of the bankruptcy process.
Ford has expressed its support of the debtor-in-possession financing to support Visteon's restructuring efforts and to ensure long-term continuity of supply, as have other of the company's global customers.
Concurrent with its Chapter 11 filing, Visteon has filed certain customary 'first-day motions' with the court to ensure a smooth transition into Chapter 11.
The first-day motions request, among other things, the authority to continue serving customers and honouring customer programmes, paying critical suppliers and honouring employee obligations.