Visteon files for bankruptcy protection in the US

Visteon Corp today filed for Chapter 11 bankruptcy protection for its operations in the US, less than two months after putting its UK operation into administration.













The car component maker, which was spun off from Ford in 2000, said it had made the move in order to reorganise its business to cope with tough market conditions for car manufacturers.



At the end of March around 200 employees at the firm’s West Belfast plant were made redundant.



Staff were given less than one hour’s notice when Visteon axed around 600 jobs at its three UK plants in Belfast, Basildon and Enfield.



Workers staged a seven week sit-in at the Finaghy Road North site in protest at being offered only statutory redundancy pay.



The sit-in ended last week after workers and their union representatives accepted an improved offer from Visteon, but the former employees are expected to start legal proceedings next month to secure pension payments.



It emerged during the protest that the UK arm of its business had not been profitable for a number of years and Visteon had investigated options to move the factory to lower cost locations as early as 2001.



Visteon’s Michigan-based parent said it had filed for relief under Chapter 11 of the US bankruptcy code to “maximise the long-term value of the company”.



Donald Stebbins, chairman and chief executive said: "During the reorganisation 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."



Visteon said it expected to fund its operations with its US cash balance, cash flows from operations and a debtor-in-possession facility.



It said Ford had given 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.



In its court filings Visteon requested authority to continue serving customers, paying critical suppliers and honouring employee obligations.



This article is from The Belfast Telegraph

Suggested Topics
PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior Analyst - ALM Data - Banking - Halifax

£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...

Java developer - Banking - London - Up to £600/day

£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...

Liquidity Reporting-Basel III-LCR-Bank-£400/day

£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...

Client Services Associate (MS Office, Analysis, Graduate)

Negotiable: Harrington Starr: Client Services Associate (Microsoft Office, Ana...

Day In a Page

Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
How live cinema screenings can boost arts audiences

How live cinema screenings can boost arts audiences

Broadcasting plays and exhibitions to cinemas is a sure-fire box office smash
Shipping container hotels: Pop-up hotels filling a niche

Pop-up hotels filling a niche

Spending the night in a shipping container doesn't sound appealing, but these mobile crash pads are popping up at the summer's biggest events
Native American headdresses are not fashion accessories

Feather dust-up

A Canadian festival has banned Native American headwear. Haven't we been here before?
Boris Johnson's war on diesel

Boris Johnson's war on diesel

11m cars here run on diesel. It's seen as a greener alternative to unleaded petrol. So why is London's mayor on a crusade against the black pump?
5 best waterproof cameras

Splash and flash: 5 best waterproof cameras

Don't let water stop you taking snaps with one of these machines that will take you from the sand to meters deep
Louis van Gaal interview: Manchester United manager discusses tactics and rebuilding after the David Moyes era

Louis van Gaal interview

Manchester United manager discusses tactics and rebuilding after the David Moyes era
Will Gore: The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series

Will Gore: Outside Edge

The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series
The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz