The auto supplier firing squad just had its first casualty. Not surprising, and definitely not the last one. The bankruptcy was filed in Delaware. From the CEO:

Visteon is taking this step to maximize the long-term value of the company. During the reorganization period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment. The results of these actions, combined with our innovative products and excellent product quality, will allow Visteon to emerge a financially sound and well-positioned company.

Interesting is that Visteon's DIP comes from none other than primary beneficiary of the supplier's parts - Ford.

Visteon's legal advisor is Kirkland & Ellis LLP; its restructuring advisor is Alvarez & Marsal and its financial advisor is Rothschild Inc.

The 3 month chart of Visteon's Term Loan is below. Now that the uncertainty about the bankruptcy is removed, and as auto suppliers become the next UAW-safeguarded sector, look for this loan to spike in price.