Lear Nears Bankruptcy; Stock Plummets

Updated from Thursday, June 25.

Lear(LEA Quote) shares lost nearly a third what little value they have after a report in the New York Post indicated that the auto-parts maker may file for bankruptcy within days.

It looks increasingly unlikely that Lear will manage to negotiate a deal with its debtholders outside of bankruptcy court, the newspaper reported, citing an anonymous Lear creditor. The company has until June 30 to cobble an agreement together under a waiver it had received in May. Lear has been in violation of its debt covenants since Dec. 31.

The Wall Street Journal reports Lear is working on a pre-packaged bankruptcy before the June 30 deadline in which it must make a $38 million interest payment on two of its bonds. ...