Lear Corp. cleared to move forward
Earlier this year Lear Corp. received court approval of its first day motions at a hearing in the United Bankruptcy Court for the Southern District of New York. The court granted interim approval for the company to continue uninterrupted use of its cash resources.
According to a company news release, these cash resources, in addition to the new money debtor-in-possession financing that the company is seeking court approval of, will provide Lear with the financial flexibility to meet its ongoing financial obligations, including employee wages, health care benefits, supplier payments and other ongoing operation expenses, as it realigns its capital structure.
Lear filed to reorganize its U.S. and Canadian businesses under Chapter 11 on July 7, in the U.S. Bankruptcy Court for the Southern District of New York.