Supplier Lear Files for Chapter 11 Bankruptcy
By Michelle Krebs July 7, 2009DETROIT -- Auto supplier Lear Corp., as expected, filed for Chapter 11 bankruptcy protection
Tuesday.
Burdened by debt and a sharp decline in car sales, Lear, the world's second-largest maker of seats and seat components, already has laid out a proposed deal with creditors to restructure its $3.6 billion debt. Lear intends to emerge from bankruptcy within a couple months.
The Detroit-based company had $13.6 billion in 2008 revenues and has 80,000 employees in 36 countries. Its primary clients are General Motors and Ford.
Lear is one of several, albeit one of the biggest, auto suppliers to file bankruptcy. Visteon, a company formed from Ford's parts-making operations, filed for bankruptcy in May.
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