Visteon makes interest payment, avoids declaring bankruptcy

[Haltech]

Filed under: Government/Legal, Earnings/Financials

Somehow, against all odds and analyst projections, auto parts supplier Visteon managed to make a $16 million interest payment on $450 million in bonds that mature in 2014. Just last week, Visteon shares hit 2 cents, forcing the New York Stock Exchange to delist the company. If the ailing supplier had failed to make the payment, it would have surely sent it spiraling into bankruptcy.

Visteon spokesman Jim Fisher says, "We continue to focus on managing through the current challenging operating environment." Reading between the lines, it seems that the company may be hoping that the Obama administration decides to offer bailout funds to the supplier industry.

Without some sort of bailout or financial assistance, it still seems likely that Visteon is headed for Chapter 11, so this will surely not be the last we hear about the troubled company over the next few months.

[Source: Detroit Free Press]Visteon makes interest payment, avoids declaring bankruptcy originally appeared on Autoblog on Fri, 13 Mar 2009 07:58:00 EST. Please see our terms for use of feeds.



Read | Permalink | Email this | Comments




More...