Lear confirms plans for Chapter 11 filing

Posted on Thursday, July 2nd, 2009 at 2:36 PM EDT.

Southfield, Mich.-based Lear Corp. said Wednesday it will file for bankruptcy protection after securing $500 million in financing to help it right its finances under court oversight, The Detroit News reported.

Lear is the latest troubled auto supplier hit by the sharp downturn in vehicle production. At least 20 auto suppliers have filed for bankruptcy this year, the paper said. The Obama administration has rebuffed a request last month by suppliers for $10 billion in direct aid, the News reported.

Lear said it would “commence shortly” a Chapter 11 filing, though the company declined to say where or when it would file, the paper said. The announcement came a day after the auto supplier skipped a $38 million debt payment, the story said. (The Detroit News)

This entry was posted on Thursday, July 2nd, 2009 at 2:36 PM EDT and is filed under Industry. You can follow any comments to this entry through the RSS 2.0 feed. Comments are currently closed.