Auto Parts Supplier Files Chapter 11

Lear Corporation has filed for Chapter 11 bankruptcy protection today, making it the third auto parts supplier in the past month to file due to financial troubles.

The company currently has $3.6 billion in loans and notes, and said it has a plan in place to restructure its debt. The plan will reportedly leave Lear with $1.1 billion in debt and $500 million of convertible shares.

Bob Rossiter, chairman, CEO and president of Lear, said the company would continue on with "business as usual" and commented that he was pleased to have the "strong support" from lenders and bondholder groups for the restructuring plan.

"We intend to proceed on an expedited basis and expect to submit the plan to the bankruptcy court within 60 days," Rossiter said. "Our goal is to emerge from this process quickly and with an appropriate capital structure to support our long-term business objectives as a leading global competitor with the financial flexibility to build on our strengths and take advantage of future growth opportunities."

Earlier this year, it was announced that J.P. Morgan Chase & Co. and Citigroup would lead a group of lenders committed to providing Lear with $500 million in bankruptcy financing.