Ford Spends $125 Million To Bail Out Parts Supplier
VAN BUREN TOWNSHIP, Mich. (AP) — Ford Motor Co. will provide $125 million or more in debtor-in-possesion financing to Visteon Corp. as the automotive parts supplier reorganizes under Chapter 11 bankruptcy protection.
In a Securities and Exchange Commission filing Thursday, Visteon, which filed for bankruptcy protection last week, said its former parent company would provide aid and also take assignment of Visteon's asset-backed loans under a revolving credit facility.
Visteon is Ford's main supplier, and both companies are looking to other creditors to help subsidize Visteon's operations while it is under bankruptcy protection, according to the filing.
Visteon, hurt by automakers slowing production due to steep declines in sales, sought bankruptcy protection for its U.S. units in May. The company's UK division separately filed for bankruptcy protection in April, closing three British plants.
According to Visteon's latest quarterly filing with regulators, the company had total liabilities of $3.96 billion and total assets of $4.56 billion at March 31. Cash and short-term investments totaled $625 million.
Dearborn-based Ford is the only major U.S. automaker free from government aid and not under bankruptcy protection. Chrysler LLC filed for bankruptcy protection in April, and General Motors filed on Monday.