Auto parts maker Visteon Corp warned on Wednesday that it was in danger of breaching its debt covenants following a 10th consecutive quarterly lossand said it was considering selling off or eliminating parts of its operations to shore up cash.



Shares of Visteon, the struggling former parts affiliate of Ford Motor Co, fell 13 percent to 13 cents. The stock has lost 96 percent of its value in the past year.



The crisis also reflects heightened pressure on the auto supply industry as U.S. auto sales remain at their lowest level in 27 years, forcing every major automaker to slash production.



U.S. auto suppliers last week submitted a formal request to the U.S. Treasury for $18.5 billion in emergency funding, saying they have been shut off from credit at a time when payments from automakers are declining rapidly.



Laurie Harbour-Felax, an automotive industry consultant,said it was likely that the company would file for bankruptcy 'soon.'



'Visteon is the one that's been on the mark for a while,' Harbour-Felax said. 'The big question is, like Delphi, will Ford help Visteon in the process?.'



Delphi Corp, the former parts affiliate of General Motors Corp, has been operating in bankruptcy since 2005. GM has taken more than $11 billion in charges to help along Delphi's reorganization.



Ford's purchasing chief Tony Brown was in Washington on Monday to make the case for federal aid for suppliers to members of the U.S. auto task force, appointed by U.S.President Barack Obama.



Ford, which represents a third of Visteon's sales, has also had high-level talks with the supplier's executives, a person familiar with the situation said.



Visteon, which cut 9,300 jobs in 2008 and plans more reductions, said the continued downturn in the global auto industry and tight credit markets had squeezed its financial results, cash flow and liquidity.