Auditors Raise Doubt About Visteon's Future

DETROIT (AP) — Visteon Corp. said Tuesday its auditors have "substantial doubt" about the company's ability to stay in business, even as the automotive supplier won temporary waivers on its debt agreements.

In a regulatory filing, the Van Buren Township, Mich.-based company said a bankruptcy filing is possible, if it is unable to meet its financial obligations. The company is struggling due to low auto sales and curtailed production levels at automakers.

The news comes the same day Visteon's U.K. subsidiary filed for bankruptcy protection.

Visteon did receive temporary waivers on its debt agreements Tuesday, which prevent the company from going into default for a limited period of time. But the company continues to explore various strategic and financial alternatives with the help of its advisers and said that if it can't negotiate a restructuring with its lenders and customers or make debt waivers permanent, it may seek to reorganize under Chapter 11 bankruptcy protection.

Visteon's U.K. subsidiary has not turned a profit since the entire company was spun off from Ford Motor Co. in 2000, and has racked up $959 million in losses since then.