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Auto suppliers under bankruptcy protection

Fri Aug 14, 2009 7:20 PM EDT
business, us, bankruptcy, glance, visteon
The Associated Press, HOEP
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— Auto parts supplier Visteon Corp. has asked a Delaware bankruptcy judge for permission to cut health and life insurance benefits for thousands of current and former workers.

Judge Christopher Sontchi said Friday that he needs time to consider the evidence and arguments.

While the Van Buren Township, Mich.-based company acknowledged that cutting off the benefits would cause hardship for some people, it claims the benefits are one of its largest liabilities and keeping them in place would make it tough for the company to reorganize.

Here's where the bankruptcy cases of other auto suppliers currently stand:

DELPHI CORP.: The Troy, Mich.-based supplier, which filed for Chapter 11 protection in October 2005, won permission in March to stop providing health care and insurance benefits to its salaried retirees. More recently, Delphi received court approval to emerge from bankruptcy protection by handing control of the company over to its lenders in exchange for debt forgiveness. The company is expected to emerge from court protection by Sept. 30.

LEAR CORP.: Lear Corp. filed for bankruptcy court protection in New York in July. Its next hearing is set Aug. 25.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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