Auto parts suppliers Visteon and Metaldyne file for bankruptcy protection

May 28, 2009

Auto parts supplier Visteon, a former division of Ford Motor Co., has filed for Chapter 11 bankruptcy protection. Chapter 11 protects firms from their creditors, allowing them to rearrange their finances while still trading. The company, which was spun off from Ford in 2000, said in a statement early on Thursday that it had filed along with some of its subsidiaries in bankruptcy court in Delaware. In its filing, Visteon listed total assets of $4.58bn (£2.88bn) and total debts of $5.32bn. Ford is still Visteon’s biggest customer, accounting for about 31% of its $1.35bn of sales in the last quarter. Ford,  has committed to ensure long-term continuity of supply and to support financing for its restructuring efforts, the company said. Visteon hasn’t posted an annual profit since being spun off from Ford nine years ago and was delisted by the New York Stock Exchange in March.

The company has facilities in 27 countries and employs approximately 31,000 people. None of its overseas subsidiaries or joint ventures outside the US are part of the filing, though the company’s Visteon UK Ltd. unit separately filed for bankruptcy protection last month and closed three British plants.  Visteon also filed a first day motion request seeking the authority to continue serving customers and paying suppliers and employees.

Metaldyne, a U.S. subsidiary to Japanese auto supplier Asahi Tec Corp., also filed for bankruptcy today, expecting to sell parts of its U.S. operations. With $1.6 billion in revenue last year and 4,400 employees, Metaldyne has lined up two private equity firms, RHJ International and the Carlyle Group, to purchase portions of its business.


Comments

2 Responses to “Auto parts suppliers Visteon and Metaldyne file for bankruptcy protection”

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