Bankruptcy judge authorizes Visteon to pay critical vendors, other obligations

Judge approves motions in Visteon bankruptcy

WILMINGTON, Del. — A Delaware bankruptcy judge has approved several first-day motions in the Chapter 11 bankruptcy case of automobile parts supplier Visteon Corp.

Visteon, the top supplier to and a former subsidiary of Ford Motor Co., filed for bankruptcy protection on Thursday, citing liquidity and debt problems, and turmoil in the automotive industry.

In an effort to protect a key supplier, Ford has agreed to support debtor-in-possession financing and take assignment of its asset-backed loans under a revolving credit facility.

On Friday, the judge authorized Visteon to continue paying wages and other pre-petition obligations, including up to $13 million to honor warranty obligations and $30.5 million to pay critical vendors.

The judge scheduled another hearing for June 19.