Visteon comfortable with liquidity following emergence from bankruptcy

By Jennifer Lanning Drey

Savannah, Ga., Jan. 12 - Visteon Corp. is comfortable with its liquidity position following the company's emergence from Chapter 11 bankruptcy in October, William Quigley, its chief financial officer, said Tuesday during a presentation at the Deutsche Bank Global Automotive Industry Conference in Detroit.

"Visteon's leverage and net debt position has dramatically improved post emergence from Chapter 11," Quigley said.

Visteon is carrying more cash than is required to run the company but isn't rushing out to use that liquidity, Donald Stebbins, Visteon's chief executive officer, later added.

At Sept. 30, Visteon had global cash balances, including restricted cash, of $1.1 billion, according to its third-quarter earnings release.

During the presentation, Quigley highlighted that Visteon's cash flow and other credit metrics have dramatically improved since 2005, which he said was largely a result of the comprehensive restructuring plan the company announced in 2006. The plan originally looked to address about 30 under-performing facilities but was later expanded.

Upon Visteon's emergence from bankruptcy, the company's total debt decreased to $618 million from $2.6 billion.

Visteon is a Van Buren Township, Mich., global automotive supplier.

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