Visteon Corp Files for Bankruptcy

Auto supplier Visteon Corp., a former unit of Ford Motor Co., put its U.S. operations into Chapter 11 bankruptcy protection Thursday, according to The Wall Street Journal.

Fellow auto supplier Metaldyne Corp. also sought Chapter 11 protection Thursday.

Chrysler’s sale hearing kicked off Wednesday and will continue Thursday. At Wednesday’s hearing, former Chrysler president Tom LaSorda testified that the partnership with Fiat will make Chrysler a stronger company. Read the Daily Bankruptcy Review story here.

U.S. lawmakers are considering banning the controversial practice of bankruptcy “forum shopping” by requiring companies to seek protection from their creditors in their home states. Sen. Jeff Sessions of Alabama, the ranking Republican on the Senate Judiciary Committee, is circulating a measure that seeks to “combat” forum shopping, an attorney familiar with the legislation told DBR.

Some California lawmakers are pushing a plan that could make it tougher for cities and counties to seek bankruptcy protection, WSJ reports.

The former head of K-mart testified Wednesday that he kept directors fully informed of the company’s financial woes in the months leading up to its 2002 Chapter 11 bankruptcy filing, according to the Associated Press, via USA Today.

French fashion house Christian Lacroix has sought protection from its creditors in France,