Lear plan of reorganization confirmed; effective date expected Nov. 9

By Alice Popovici

New York, Nov. 5 - Lear Corp.'s plan of reorganization was confirmed Wednesday during a hearing in the U.S. Bankruptcy Court for the Southern District of New York.

Lear expects to emerge from bankruptcy on Nov. 9, according to a company press release.

"Today's confirmation is an important milestone for Lear," said Bob Rossiter, president and chief executive officer, in the press release. "Upon emergence, we will have substantially lower debt, a strong and flexible balance sheet and in excess of $1 billion in cash. This capital restructuring, combined with the significant operational restructuring we have completed since mid-2005, positions our company for profitable growth and long-term success."

As previously reported, the company's plan of reorganization was unanimously accepted by two of three classes of voting creditors.

Specifically, all 148 holders of $1.171 billion in pre-bankruptcy credit agreement secured claims and all 33 holders of $491,629 in convenience claims voted to accept the plan.

In addition, 497 holders, or 96.88% in number, of $1.651 billion, or 99.97% in amount, of general unsecured claims voted to accept the plan, while 16 holders, or 3.12% in number, of $576,053, or 0.03% in amount, of these claims voted to reject it.

Lear, a Southfield, Mich.-based automotive parts supplier, filed for bankruptcy on July 7. Its Chapter 11 case number is 09-14326.

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