The maker of automotive seats and interior electronics Lear announced today that it would file for Chapter 11 bankruptcy protection shortly. The group and its lenders found an agreement on this solution.
Lear is the biggest collateral victim of the global decrease of car sales.
The group had announced on June 1st that it had used its right to obtain a 30-days delay for the reimbursemrnt of its &38 million debt. According to the group's managers, filing for Chapter 11 bankruptcy protection is the fastest and most efficient way to deal with the debt.
A group of lenders, holders of guaranteed debt, led by Citigroup and JPMorgan Chase, lent Lear $500 million to allow it to go on working during its restructuration.
Until today, Visteon was the biggest maker of automotive seats and interior electronics to have gone to bankruptcy.
Francois-Xavier Motte
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