Visteon files for bankruptcy
tryme submitted on 5/28/2009 Official Bell & Ross Timestamp: 11:28:55 AM
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Visteon, a company dealing in car parts, has filed for Chapter 11 bankruptcy protection for its operation in the US.
Since it was spun off by Ford 9 years ago, the firm, which has 11,000 workers, has failed to come up with an annual profit.
The firm hit the headlines earlier this year when it closed down three of its UK operations involving 600 jobs. The company intends to address their capital structure and legacy costs that are unsustainable considering the present economic climate. It is anticipated that Visteon will be largely dependent on Ford, its former parent company, for providing cash during its restructuring. Analysts see this as a problem since Ford does not have cash surplus for such projects.
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