NEW YORK, SOUTHFIELD, Mich. (AP)—
Struggling automotive parts supplier Lear Corp. says it has filed for Chapter 11 bankruptcy protection after receiving the support it needed from lenders and bondholders.
The Southfield, Mich., company, which makes automotive seating systems and electronics, had been negotiating with its lenders and bondholders for additional support for its restructuring plan.
It has been preparing the filing since last week and received a commitment for $500 million in loans to finance its bankruptcy from a group of lenders led by J.P. Morgan and Citigroup.
Lear filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. Subsidiaries outside the U.S. and Canada are not part of the filings, the company says.
July 1, 2009
Automotive parts supplier Lear Corp. says it is preparing to file for Chapter 11 bankruptcy protection and has lined up support from its creditors for a restructuring plan.
A company spokesman says it is working to line up more creditors for the plan but declined to say how many are on board. The spokesman also declined to say when or where the company would file for court protection.
Lear says it has received commitments from a group of lenders led by J.P Morgan and Citigroup for $500 million in bankruptcy financing.
The maker of automotive seating and electrical systems says it expects to default on senior notes due 2013 and 2016 once a 30-day grace period on their interest payments expires on Thursday.