By doing so, Lear will become the biggest automotive supplier to file for bankruptcy in 2009. J.P. Morgan and Citigroup will lead the group financing the bankruptcy, Autonews reported.
"We intend to complete the restructuring as quickly as possible. 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," Bob Rossiter, Lear CEO was quoted as saying by the source.
Lear will go into bankruptcy with a $500 million debtor-in-possession financing and a debt-restructuring agreement backed by a committee of secured lenders and bondholders, Lear said in a statement released today.
The step towards bankruptcy has been made in order to protect the long-term plans of the company, Lear added. "This protective action was the fastest and most effective way to de-lever its capital structure."
Back in May, Lear posted its financial results for the first quarter of 2009, showing a 44 percent drop in revenues from one year before. Net sales amounted to $2.2 billion in Q1, with 68 percent of that amount outside North America.
Until now, some 20 suppliers for the automotive sector filed for bankruptcy, including Metaldyne and Visteon.
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