DETROIT (Reuters) -- Auto-parts maker Visteon Corp. warned on Wednesday it might breach its debt covenants following a steep quarterly loss and said it was considering disposing of substantial assets to address liquidity needs.
Visteon, the former parts affiliate of Ford Motor Co., said the continued downturn in the global auto industry and tight credit markets have put squeeze on its financial results, cash flows and liquidity.
"As a result, Visteon cannot assure that it will remain in compliance with the terms of its outstanding debt instruments," the company said in a statement.
"Visteon continues to explore options to address future liquidity needs, including administrative actions, delaying capital expenditures, curtailing, eliminating or disposing of substantial assets or operations, or undertaking other significant restructuring measures," the company said.
It had drawn nearly all of the funds available under its U.S. revolving credit facility and had $1.18 billion in cash at the end of last year.
The company posted a $328 million net loss in the fourth quarter, compared with a year-earlier loss of $43 million. Visteon hasn't recorded an annual profit since its 2000 spinoff from Ford.
Revenue fell to $1.65 billion from $2.86 billion a year earlier.