Visteon Corp.'s (VC) bankruptcy risk intensified Wednesday after the auto-parts maker posted a wider fourth-quarter loss resulting in its eighth-straight unprofitable year.

The auto-parts maker also said due to the industry's downturn, it might violate its debt covenants.

"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."

Visteon reported a fourth-quarter net loss of $328 million, or $2.53 a share, compared with a year-earlier net loss of $43 million, or 33 cents a share. The latest quarter included a $200 million write-down at its interiors business.

Revenue slumped 42% to $1.65 billion. Gross margin was negative 0.6%.

On average, analysts surveyed by Thomson Reuters projected a loss of $1.70 a share on revenue of $1.93 billion.

The results underscore the dire situation facing Visteon, which was spun off from Ford Motor Co. (F), as it struggles to stay out of bankruptcy protection. The maker of satellite radios, instrument displays and climate-control equipment hired legal and financial advisers to prepare for possible bankruptcy proceedings in January, according to a report in The Wall Street Journal. Visteon said has been advised by Kirkland & Ellis and Rothschild since 2003.

The company - which on Wednesday announced the completion of its three-year downsizing ahead of schedule - last month drew down another $30 million from its credit facility and announced other cost cuts, including suspending 401(k) matching contributions and salary increases.

Ford, which is dealing with its own financial problems after posting a historic $14.6 billion annual loss for 2008, said in January it will not provide any special treatment for the parts unit it spun off in 2000. "We're not contemplating any dramatic action," Ford Chief Financial Officer Lewis Booth said at the time.

Auto-parts makers of all stripes have been pressured as auto production slumps because of sales tumbling to the lowest levels in decades.

Visteon has continued to diversify away from Ford for the brunt of its sales. Ford made up nearly 30% of product sales in the quarter, while Hyundai Motor Co. (005380.SE) and subsidiary Kia Motors Corp. (000270.SE) made up 28%. Europe and the Asia Pacific region each made up nearly 35% of product sales.

Visteon's stock has fallen more than 95% during the past five months and closed Tuesday at 15 cents.

-By Jeff Bennett, Dow Jones Newswires; 248-204-5542; jeff.bennett@dowjones.com