Car Seat Maker Lear Buckles Up For Prepack Ch. 11

Law360, New York (July 1, 2009, 12:00 AM EDT) -- Lear Corp., the world’s second-largest automotive seat manufacturer, is set to enter Chapter 11 for an expedited restructuring and has obtained $500 million in debtor-in-possession and exit financing.

Lear announced Wednesday that it would shortly enter Chapter 11 bankruptcy for a rapid restructuring now that an agreement has been struck among the company, its secured lenders and its bondholders to pay in full Lear’s trade creditors.

The seat manufacturer’s U.S. and Canadian subsidiaries will undergo restructuring, while the company’s “well-capitalized, well-positioned” and busy overseas operations will...
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