DETROIT (Reuters) - Ford Motor Co F.N has agreed to provide at least $125 million of financing to support former parts unit Visteon Corp's VSTN.PK restructuring under Chapter 11 bankruptcy protection, Visteon said on Thursday.
The auto parts supplier, spun off from Ford in 2000, filed for bankruptcy last week, becoming the latest casualty of the global auto industry crisis and adding to the pressure on cash-strapped automakers.
At the time of the filing, Visteon said the No. 2 U.S. automaker had made a commitment to support bankruptcy financing for its restructuring efforts to ensure a continued supply of parts, but had not detailed the size of the financing.
In a filing with the U.S. Securities and Exchange Commission on Thursday, the company said Ford would provide no less than $125 million under the terms of a senior, super-priority debtor-in-possession revolving credit facility.
Visteon is also in discussions with customers other than Ford regarding commitments to the credit facility, the company said. The finalized bankruptcy financing facility must be in place by June 30, when Ford’s commitment is set to expire.
Ford, the only U.S. automaker operating without emergency government loans, is struggling to survive the worst auto sales slump in nearly three decades that has sent U.S. rivals Chrysler and General Motors Corp GM.N into bankruptcy.
Ford is still Visteon’s biggest customer and accounted for about 31 percent of its $1.35 billion of sales last quarter.
Reporting by Soyoung Kim, editing by Maureen Bavdek
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