Lear Reaches Agreement On Consensual Debt Restructuring
Published:01-July-2009
By Staff Reporter
To protect the long-term business interests of the company
Lear Corporation, a supplier of automotive seating systems, electrical distribution systems and electronics, has reached an agreement regarding a consensual debt restructuring with its secured lenders and bondholders.
The company plans to commence the proposed restructuring under court supervision pursuant to a voluntary bankruptcy filing under Chapter 11, by the company and certain of its US and Canadian subsidiaries.
The agreement in principle provides that, subject to certain limited exceptions, Lear's trade creditors would be paid in full, said the company.
The company’s subsidiaries outside the US and Canada would not be part of the bankruptcy filing.
Bob Rossiter, Chairman, CEO and President, Lear, said, "This restructuring is being undertaken to maximize the long-term value of the Company."
"We want to assure everyone - customers, suppliers, employees, and the communities of which we are a part - that Lear is committed to positioning our business for sustainable success. We believe that the agreement in principle with the steering committees of our secured lenders and bondholders to support our plan of reorganization will enable us to emerge expeditiously," he added.
