Page last updated at 09:02 GMT, Thursday, 28 May 2009 10:02 UK

Visteon enters bankruptcy in US

Workers protest at Visteon's Belfast factory
Visteon UK closed three factories, resulting in the loss of 600 jobs

US car parts maker Visteon, which was spun off from Ford in 2000, has filed for Chapter 11 bankruptcy protection.

Chapter 11 protects firms from their creditors, allowing them to rearrange their finances while still trading.

Visteon has a presence in the UK, but the group said that none of its subsidiaries or joint ventures outside the US were part of the filing.

Visteon UK went into administration in March and closed three factories, leading to protests by workers.

The move comes during a critical week for the car industry, with the German government in talks with potential bidders for GM Europe, while General Motors itself must restructure by Monday or face bankruptcy.

'Not sustainable'

In its filing, Visteon listed total assets of $4.58bn (£2.88bn) and total debts of $5.32bn.

BANKRUPTCY PROTECTION
US bankruptcy protection is called Chapter 11
It gives US businesses time to rearrange their finances while continuing to trade, protected from their creditors

"During the reorganisation period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment," Visteon chief executive Donald Stebbins said in a statement.

Ford is still Visteon's biggest customer, accounting for about 31% of its $1.35bn of sales in the last quarter.

Visteon said that Ford and other customers had pledged their support.



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