Auto Supplier Lear Exits Bankruptcy

SOUTHFIELD, Mich. (AP) — Auto parts maker Lear Corp. emerged Monday from four months in bankruptcy protection, saying it has a healthier balance sheet, less debt and a backlog of new business.

A federal judge approved Lear's reorganization plan last week, paving the way for its emergence from bankruptcy. The Southfield-based maker of automotive seats and electronics expects its new shares — under the "LEA" symbol — will begin regular trading later this week on the New York Stock Exchange. Lear's old shares were canceled.

Under the reorganization plan, Lear's lenders forgave $2.8 billion in debt in exchange for equity. Lear said it now has less than $1 billion in debt at competitive interest rates with no near-term maturity.

Lear said it has $1 billion in cash on hand and $1.4 billion in sales lined up through 2012 despite the automotive industry downturn. More than half of those sales are in higher-margin electronics and come from outside North America, further diversifying Lear's portfolio.

Lear also is replacing six of its nine board members.