May 28, 2009

Auto supplier Visteon files for bankruptcy

U.S. auto parts giant Visteon Corp. has filed for Chapter 11 bankruptcy protection in Delaware, citing the slowdown in auto sales, the company said Thursday.

The filing comes with the third largest U.S. automaker, Chrysler LLC in bankruptcy court. The largest car company, General Motors Corp., appears likely to file for protection from creditors on or before June 1, the federal deadline for GM to reshape itself to allow for an extension of a federal line of credit.

In a statement, Visteon Chairman and Chief Executive Officer Donald Stebbins said the company would address our capital structure and legacy costs that are not sustainable given the current economic environment.

Visteon expected to use available cash to fund its current operations, The Detroit News reported.

Along with the bankruptcy filing, Visteon filed a motion to allow it to continue to fill orders and pay employees and suppliers.

Visteon operates in 27 countries and has 31,000 employees, the newspaper said.