Thursday, May 28, 2009

Two Auto Suppliers Enter Chapter 11

Days after Michigan Governor Granholm asked for $8 billion in financing for auto suppliers, two companies went bankrupt, Visteon and Metaldyne. WaPo reported:

Both Visteon, which Ford Motor Co. spun off in 2000, and Metaldyne Corp, a unit of Japan's Asahi Tec, said on Thursday that the bankruptcy filings do not include their non-U.S. entities or operations.
Corporation structures are complex and fire-walled, supposedly reducing risk. However, it makes it easier to shed a loser. In this case, the taxpayer may shoulder the burden. While the public pays for the casket of living dead AIG and a shuttered BankUnited, corporate vultures pick at the carcass, even carrying them off whole.