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Southfield-based seat maker Lear Corp. said it filed for bankruptcy early this morning after winning support for it' reorganization plan from more of its lenders and bondholders.
In a securities filing made Monday, the supplier -- which said Wednesday that it plans to file for bankruptcy -- revealed plans for its bankruptcy reorganization.
Lenders and bondholders that have already signed on to the deal include Carlyle High Yield Partners, Deutsche Bank AG, Merrill Lynch and Icahn Partners LP.
Lear's plans include cutting its debt by 70%, from $3.6 billion down to about $1.1 billion -- not including new preferred and common stock issued when the company emerges from bankruptcy.
Existing shares, which trade over the counter and were delisted from the New York Stock Exchange on Thursday, will be wiped out.
Lear told lenders that it expects revenue to fall 33% to $9.1 billion, in 2009, but to increase to $11.4 billion in 2010, according to the filing.
Lear, in its filing, said it plans to maintain its pension and health care benefits.
Lear, which expects to emerge with a nine-member board of directors, has established two management incentive plans.
One would give up to 200 employees as much as 10% of the company's new common stock.
The other plan would award 29 of Lear's top executives cash bonuses. Lear did not disclose the potential value of those bonuses.
But the company indicated in the filing that the size of those bonuses would depend upon the company reaching certain thresholds, such as emerging from bankruptcy within 300 days.
Contact JEWEL GOPWANI: 313-223-4550 or jgopwani@freepress.com
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