US: Reorganised Visteon out of Chapter 11 process
Supplier Visteon said at the weekend it had completed its reorganisation and emerged from the US Chapter 11 bankruptcy protection process with "significantly improved capital structure" leaving it "well-positioned for profitable and sustainable growth".
The firm said in a statement it had completed all conditions of its reorganisation plan, approved by a bankruptcy court on 31 August, "after overwhelming approval by all creditor and shareholder classes". It had emerged with a stronger balance sheet and about US$2.1bn less consolidated debt than when it voluntarily 'filed for Chapter 11' on 28 May last year.
"Today marks a new beginning for Visteon, an opportunity to truly capitalise on the many operational and financial improvements achieved before and during the reorganisation process," said chairman, CEO and president Donald Stebbins. "I am extremely grateful to our customers, suppliers, secured lenders, bondholders and many others for their support throughout this difficult process."
Visteon said it reduced consolidated debt from about $2.7bn at the time of the filing to about $600m today - a competitive level for a Tier 1 supplier.
"The new Visteon is focused on four strong product lines - climate, electronics, interiors and lighting," Stebbins said. "We have an outstanding global manufacturing and engineering footprint, with particular strength in the fast-growing markets in Asia, Eastern Europe and Brazil. We have an experienced and talented employee base, complemented by strong joint venture partners and strategic alliances that provide a competitive advantage in the key automotive markets of the world."