Bankrupt Visteon has received court approval for deals that will help it restructure operations and secure finance.
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Reuters reported that the company received approval from a bankruptcy judge in Delaware for US$150m in financing to support its operations as it reorganises under Chapter 11.
The company filed for bankruptcy in May and has funded operations by using cash it was holding as collateral for its borrowings. Ford funded Visteon’s first month in Chapter 11, Reuters noted.
The company’s attorneys told the hearing Visteon will run out of cash in March without the debtor-in-possession, or DIP, financing.
The court decision means that Visteon can restructure businesses without disrupting the supply of parts to OEMs.
The Reuters report suggested that Chrysler will make payments of at least US$31m to Visteon and in return Visteon will shift the manufacture of parts to other suppliers and transfer tools and intellectual property to Chrysler.
Visteon also received approval for a similar agreement to sell operations that supply Nissan’s North American facilities.
