« on: May 28, 2009, 01:12:27 pm »
runs downhill so they say. This is where the GM and Chrysler bankruptcies will really really hurt small to medium sized business.
WASHINGTON (AFP) — Visteon, the former auto supply division of Ford Motor Co., filed Thursday for bankruptcy protection, the latest victim of the deepening crisis in the auto sector.
Michigan-based Visteon filed under chapter 11 of the bankruptcy code in federal court in Delaware, saying that Ford had agreed to providing funding through the reorganization process with so-called debtor-in-possession financing.
"Visteon expects to fund its operations with its US cash balance, cash flows from operations and a debtor-in-possession facility," the company said.
"Ford Motor Company has executed a commitment letter to support debtor-in-possession financing for Visteon's restructuring efforts and to ensure long-term continuity of supply. Other global customers have also expressed their support."
Visteon said it had assets of 4.58 billion dollars, making it one of the largest auto suppliers, and listed debts of 5.3 billion.
No Visteon subsidiaries or joint ventures outside the US are part of the filing. But Visteon's British subsidiary sought creditor protection in March.
"Visteon is taking this step to maximize the long-term value of the company," said chairman and chief executive Donald Stebbins.
"During the reorganization 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, combined with our innovative products and excellent product quality, will allow Visteon to emerge a financially sound and well-positioned company."
Visteon joins in bankruptcy General Motors' former parts division, Delphi, which has been under court supervision since 2005.
Chrysler, the number three automaker, is seeking a quick emergence from bankruptcy after its court filing April 30, while GM itself is widely expected to seek bankruptcy reorganization.
Visteon operates in 27 countries and employs 31,000 people. Ford represents around 30 percent of its business, with South Korea's Hyundai accounting for 25 percent. French-based Renault-Nissan represents some seven percent of sales and Peugeot-Citroen six percent.
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Political extremism involves two prime ingredients: an excessively simple diagnosis of the world's ills, and a conviction that there are identifiable villains back of it all. - John W. Gardner
