Global automotive supplier Visteon Corporation and certain of its US subsidiaries voluntarily filed petitions for relief under Chapter 11 of the US Bankruptcy Code. The petitions were filed in the US Bankruptcy Court for the District of Delaware. No Visteon subsidiaries or joint ventures outside the US are part of the filing.
Visteon is taking this step to maximize the long-term value of the company. 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.—Donald Stebbins, chairman and CEO
Visteon expects to fund its operations with its US cash balance, cash flows from operations and a debtor-in-possession facility. 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.
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 honoring customer programs, paying critical suppliers and honoring employee obligations.
Visteon’s legal advisor is Kirkland & Ellis LLP; its restructuring advisor is Alvarez & Marsal and its financial advisor is Rothschild Inc.