American auto parts firm Visteon Corp, one of the major suppliers of Ford Motor, has filed for bankruptcy protection.
The Chapter 11 protection has been sought for the company and certain of its US subsidiaries.
In a statement on Thursday, Visteon said that none of its subsidiaries or joint ventures outside the US are part of the filing.
"Visteon is taking this step to maximize the long-term value of the company. During the reorganisation period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment," Visteon Chairman and Chief Executive Officer Donald J Stebbins said.
The firm would continue with its operations during the reorganisation period.
According to its website, the company has significant presence in the Asia-Pacific region and has five technical centres in India, China and Korea. They include both wholly-owned and joint venture facilities of Visteon.
The entity has about 31,000 employees worldwide.
Visteon expects to fund its operations with its US cash balance, cash flows from operations and a debtor-in-possession facility.
"Ford Motor Company has executed a commitment letter to support debtor-in-possession financing for Visteon's restructuring efforts and to ensure long-term continuity of supply. Other global customers have also expressed their support," the statement noted.
Ford is one of the main customers of Visteon.
The bankruptcy of Visteon is yet another reflection of the deteriorating situation in the American auto sector. Ailing car maker General Motors is on the verge of bankruptcy and is expected to file for the same as early as next week. Already, another auto maker Chrysler has gone bankrupt.
