China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
UPDATE 1-Lear plan of restructuring confirmed by US judge
* Judge confirms Lear plan of reorganization
* Lear to restructure $3.6 bln in debt
* $950 million financing available for capital needs
* Plan of reorganization effective Nov. 9--Lear
NEW YORK, Nov 5 (Reuters) - A judge confirmed on Thursday Lear Corp's LEARQ.PK plan of reorganization, putting the company on track to emerge from bankruptcy by Nov. 9.
Under the plan, the maker of seats, door panels and electrical distribution systems for cars will restructure $3.6 billion of its pre-bankruptcy debt and shareholders will be wiped out. The company has obtained $950 million in new financing for business expenses.
Some bondholders and creditors will receive new common stock and become the new owners of the company.
"It's extremely important that the company move forward," said U.S. Bankruptcy Judge Allan Gropper in a hearing in New York.
The judge's decision applies to all of Lear's operations in the U.S. and Canada that were included in the bankruptcy cases. Lear's other subsidiaries were not a part of the bankruptcy proceedings.
Lear has filed an application with the New York Stock Exchange to list its new common stock under the ticker symbol "LEA," the company said in a statement.
"Upon emergence, we will have substantially lower debt, a strong and flexible balance sheet and in excess of $1 billion dollars in cash," said Lear Chairman, Chief Executive Officer and President Bob Rossiter, in a statement.
Some of the pre-bankruptcy credit agreement lenders will recover, on aggregate, 83 percent of their secured claims.
The case is In re: Lear Corp, U.S. Bankruptcy Court, Southern District of New York, No. 09-14326. (Reporting by Chelsea Emery; editing by Andre Grenon)
