Alternate Route

May 28, 2009 - Timeout... Do-Over!

Auto parts makers Visteon Corp and Metaldyne Corp filed for Chapter 11 bankruptcy protection for their U.S. operations, becoming the latest casualties of the global auto industry.

Every time some people here the word "bankruptcy" they think that means companies are going out of business, and that's not really what's going on here.

It's a lot more like a "do-over" where you've made bad decisions, or found yourself in a bad situation and can play a card that gets you back in the game.

Of course, there are going to be losers.

In a filing with the U.S. Bankruptcy Court for the District of Delaware, Visteon listed total assets of $4.58 billion and total debts of $5.32 billion.

Visteon's unsecured creditors include a unit of Bank of New York Mellon Corp holding bond debts, the Pension Benefit Guaranty Corp and IBM, which is a trade creditor.

Unsecured creditors. Sort of sounds like what we're going to be if the government takes a stake in GM, doesn't it?

Read more at Reuters.com

3:20 am | Categories: automotive news Permalink | Alert Administrator

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