Visteon files for chapter 11

MUNICH, Germany — US-based automotive tier one Visteon Corp. has filed for chapter 11 of the US Bankrupcy Code. European subsidiaries are not affected. The company hopes to maintain its business but it for the time being it is unclear if and how it will able to do so.

Worldwide, the manufacturer of climate, interior electronic and lighting products for vehicles employs 31.000 persons, including in its European headquarters in Basildon, UK, as well as in several subsidiaries in France, Germany, Italy and other European countries. Entities outside the United states are not affected, the company said in a press release. However, it was not available to provide further details.

In a press statement, Visteon chairman and CEO Donald J. Stebbins, said the company has taken the step of filing for chapter 11 "to maximize the ling-term value of the company. At the same time he announced a reorganization — in most cases the euphemistic expression for job cuts. "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 result of these actions, combined with our innovative products, will allow Visteon to emerge a financially sound and well-positioned company," Stebbins said.

The company also said it expects to fund its operations with U.S. cash balance, cash flow from operations and a debtor-in-possession facility. Former parent company Ford Motor Company in this context already announced to support Visteon.

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