Southfield, Michigan - Seating systems supplier Lear Corp. has gained court approval to continue uninterrupted use of its cash resources under Chapter 11 bankruptcy protection. These, as well as the new debtor-in-possession financing that Lear wants court approval for, will allow Lear to meet its ongoing financial obligations, including employee wages, healthcare benefits, supplier payments, and other operating expenses, as it realigns its capital structure, the automotive supplier said in a 9 July announcement.
The court also issued a variety of orders that will ensure that Lear continues to operate uninterrupted throughout the reorganisation process, the company said.
Lear's businesses outside the US and Canada are unaffected by the bankruptcy filing, the company pointed out.
These court approvals mean that the Chapter 11 filing will not impact Lear's day-to-day operations.
"We are pleased with the court's prompt approval of our first day motions," said Bob Rossiter, Lear's chairman, chief executive officer and president. "... we will be able to maintain regular operations and continue paying our employees, while meeting our obligations to our suppliers and serving our customers as we work to realign our capital structure as expeditiously as possible."