WILMINGTON, Del. – Auto parts supplier Visteon Corp. is asking a Delaware bankruptcy judge for permission to terminate retiree health care and life insurance benefits for thousands of current and former workers.
At a hearing Thursday, Visteon representatives said the retiree benefits are one of the company's largest liabilities and a significant obstacle to a successful reorganization.
A Visteon attorney acknowledged that the decision, which affects roughly 8,000 people, will impose significant hardships for some. But the company says the retiree benefits represent a $310 million liability, with projected cash costs of $31 million this year alone.
Visteon, the top auto parts supplier and former subsidiary of Ford Motor Co., filed for bankruptcy protection in May.
The hearing is scheduled to resume Friday morning.
© 2017 Newsmax. All rights reserved.