Southfield, Michigan - Automotive seating systems supplier Lear Corp. is seeking an amendment and waiver under its primary credit facility "in light of current and long-term industry conditions," the company said 6 Jan.
The company said at the end of Q3 2008 it had more than $500 million in cash but during Q4 2008 it fully borrowed amounts available under its revolving credit facility "in order to protect against disruptions in the capital markets and to further bolster its liquidity position," Lear said. As of 31 Dec Lear had around $1600 million in cash "providing more than ample resources to satisfy ordinary course business obligations," the company added.
Lear has initiated discussions and engaged Goldman Sachs to assist in the proposed bank amendment and will seek to complete the amendment and waiver prior to finalising its 2008 financial statements, the statement said.
"Our liquidity position is strong," said Lear chairman and ceo, Bob Rossiter. "However, given the very challenging external environment, we are pro-actively addressing our capital structure to maintain our financial flexibility," he concluded.