Lear CDS triggered by debt payment miss - ISDA

NEW YORK, July 6 (Reuters) - Payments on credit default swaps protecting the debt of Lear Corp LEAR.PK will need to be made after the auto parts supplier missed a debt payment, trade group the International Swaps and Derivatives Association said on Monday.

Lear said last week it would file for Chapter 11 in a reorganization supported by key secured lenders and bondholders and had obtained $500 million in bankruptcy financing. For details see [ID:nN01525902].

A waiver from lenders on its loan defaults expired on June 30. Lear was also near the end of a 30-day grace period on a $38-million bond interest payment it missed on June 1.

Net volumes of around $687 million in credit default swaps are outstanding on Lear's debt, according to the Depository Trust & Clearing Corp. [ID:nN01525902] (Reporting by Karen Brettell; Editing by James Dalgleish)