Southfield, Michigan - Seating supplier Lear Corp., has agreed an amendment to its primary credit facility with its lenders, the company announced 17 March.
Lear said on 6 Jan 2009 that it was looking for such an amendment and waiver of its primary credit facility "in light of financial covenant defaults and adverse current and longer-term industry conditions."
Since then, the Company has been in active discussions with lenders and said this agreement provides the needed waiver of Lear's existing defaults under its primary credit facility and an amendment of the financial covenants and certain other provisions of the primary credit facility, valid up to 15 May 2009.
Lear, which makes automotive seating systems, electrical distribution systems and electronic products, is still actively discussing with its lenders further modifications to its primary credit facility "in light of existing and projected industry conditions," the company added.
"Despite the challenging conditions we are facing, we continue to have a strong liquidity position and we remain focused on maintaining operational excellence globally," commented Bob Rossiter, Lear's chairman, chief executive officer and president, in the company statement.
Lear reported net sales of $2600 million in Q4 and $13 600 million for full year 2008, with core operating earnings that it said were positive in Q4 and strong for the full year. At the time Lear declared it would accelerate and expand its global restructuring and cost reduction efforts and continue to diversify sales: 64 percent of its 2008 revenue was generated outside North America.