Ford assumes $163 million asset-based loan for Visteon

By David Bailey

DETROIT (Reuters) - Ford Motor Co has assumed a $163 million secured revolving credit facility from lenders to U.S. auto parts maker Visteon Corp, one of its biggest suppliers, Visteon said in a regulatory filing on Friday.

Ford took on the asset-based loan from lenders to Visteon on Wednesday, according to a Visteon filing with the U.S. Securities and Exchange Commission. The parts maker has other larger debt that is still being discussed with lenders.

"We remain in active discussions with our customers and lenders to address our liquidity and our capital requirements," Visteon spokesman Jim Fisher said.

He said the auto parts maker was continuing to explore other strategic and financing alternatives.

Visteon, which Ford spun off in 2000, said on Monday it was in discussions with lenders to restructure its debt and could be forced to file for bankruptcy protection if the effort failed. It also said it was in talks with some of its major customers to address liquidity and capital requirements.

Ford executives have said in recent months that the automaker was not contemplating any dramatic action regarding Visteon and had not seen any need for a cash injection.

The health of the U.S. auto parts supply base has been a priority for Ford with Chrysler in bankruptcy and General Motors Corp barely two weeks from a government-imposed deadline to restructure or follow Chrysler down that road.

Visteon will be required to meet several conditions under the loan agreement with Ford, including maintaining at least $264 million of cash and cash equivalents, the filing said.