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Lear files for Chapter 11

New York -- U.S. automobile seat producer Lear Corp. filed for bankruptcy protection Tuesday after securing funds to keep its business in operation, court records show.

New York -- U.S. automobile seat producer Lear Corp. filed for bankruptcy protection Tuesday after securing funds to keep its business in operation, court records show.

The company that produces 54,000 auto seats each day in 36 countries said it had $1.27 billion in assets and $4.5 billion in debts, The Detroit News reported.

Sales in 2008 reached $13.6 billion.

Its restructuring plan calls for most of the company's good assets to be transferred to secured lenders and noteholders, while the "bad" assets would be sold under the Section 363 of the bankruptcy code.

General Motors Corp. and Chrysler LLC used Section 363 to race through bankruptcy proceedings.

Lear's Chairman, Chief Executive Officer and President Bob Rossiter said the goal for Lear was "to emerge from this process quickly and with an appropriate capital structure to support our long-term business objectives."

After securing $500 million in debtor-in-position funding from secured lenders, including J.P. Morgan and Citigroup, "we are conducting business as usual," Rossiter said.

Copyright 2009 by United Press International.

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