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8-K - FORM 8-K - LEAR CORP | k48510e8vk.htm |
EX-99.1 - EXHIBIT 99.1 - LEAR CORP | k48510exv99w1.htm |
FOR IMMEDIATE RELEASE
Lear Contact:
Mel Stephens
(248) 447-1624
Mel Stephens
(248) 447-1624
Court Confirms Lears Plan of Reorganization
SOUTHFIELD,
Mich., November 5, 2009 Lear Corporation, a leading global supplier of
automotive seating systems, electrical distribution systems and electronic products, today
announced that the U.S. Bankruptcy Court of the Southern District of New York has entered an order
confirming the Companys Plan of Reorganization, clearing the way, after only four months, for Lear
to emerge from bankruptcy. An overwhelming majority of all voting classes voted in favor of the
Companys Plan of Reorganization.
Todays confirmation is an important milestone for Lear, said Bob Rossiter, Lears Chairman,
Chief Executive Officer and President. Thanks to the diligent work of our employees and the
tremendous support we have received from our customers, suppliers, secured lenders, bondholders and
others, we have moved through the restructuring process expeditiously.
Mr. Rossiter added, Upon emergence, we will have substantially lower debt, a strong and
flexible balance sheet and in excess of one billion dollars 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.
Lear expects the Plan of Reorganization to become effective on November 9, once all closing
conditions have been met.
The Company has filed an application with the New York Stock Exchange (NYSE) to list its new
common stock under the ticker symbol LEA. Subject to the approval of Lears application, Lear
expects that its new common stock will begin trading on the NYSE on a when issued basis (LEA WI)
on or about the effective date of the Plan of Reorganization and commence regular way trading as
soon as possible thereafter.
At todays confirmation hearing, the Honorable Judge Allan L. Gropper affirmed that Lear has
met all of the necessary statutory requirements to confirm its Plan of Reorganization and exit from
Chapter 11. This ruling applies to all of Lears operations in the U.S. and Canada that were
included in the bankruptcy cases. Lears other subsidiaries were not a part of any of the
bankruptcy proceedings.
2
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements regarding anticipated financial
results and liquidity. Actual results may differ materially from anticipated results as a result
of certain risks and uncertainties, including but not limited to: the potential adverse impacts of
the filing of the chapter 11 bankruptcy proceedings on the Companys business, financial condition
or results of operations, including the Companys ability to maintain contracts, trade credit and
other customer and vendor relationships that are critical to its business and the actions and
decisions of the Companys creditors and other third parties with interests in the Companys
chapter 11 proceedings; the Companys ability to consummate the confirmed plan of reorganization
with respect to the chapter 11 proceedings and to consummate all of the transactions contemplated
by such plan of reorganization or upon which consummation of such plan may be conditioned; the
timing of the consummation of the plan of reorganization; the occurrence of any event, change or
other circumstance that could give rise to the termination of the plan support agreements the
Company has entered into with certain of its lenders and bondholders; the anticipated future
performance of the reorganized Company, including, without limitation, the Companys ability to
maintain or increase revenue or gross margins, control future operating expenses or make necessary
capital expenditures; general economic conditions in the markets in which the Company operates,
including changes in interest rates or currency exchange rates, the financial condition and
restructuring actions of the Companys customers and suppliers; changes in actual industry vehicle
production levels from the Companys current estimates; fluctuations in the production of vehicles
for which the Company is a supplier; the loss of business with respect to, or the lack of
commercial success of, a vehicle model for which the Company is a significant supplier, including
further declines in sales of full-size pickup trucks and large sport utility vehicles; disruptions
in the relationships with the Companys suppliers; labor disputes involving the Company or its
significant customers or suppliers or that otherwise affect the Company; the Companys ability to
achieve cost reductions that offset or exceed customer-mandated selling price reductions; the
outcome of customer negotiations; the impact and timing of program launch costs; the costs, timing
and success of restructuring actions; increases in the Companys warranty or product liability
costs; risks associated with conducting business in foreign countries; competitive conditions
impacting the Companys key customers and suppliers; the cost and availability of raw materials and
energy; the Companys ability to mitigate increases in raw material, energy and commodity costs;
the outcome of legal or regulatory proceedings to which the Company is or may become a party;
unanticipated changes in cash flow, including the Companys ability to align its vendor payment
terms with those of its customers; further impairment charges initiated by adverse industry or
market developments; the impact and duration of domestic and foreign government initiatives
designed to assist the automotive industry; and other risks described from time to time in the
Companys Securities and Exchange Commission filings. Future operating results will be based on
various factors, including actual industry production volumes, commodity prices and the Companys
success in implementing its operating strategy.
The forward-looking statements in this press release are made as of the date hereof, and the
Company does not assume any obligation to update, amend or clarify them to reflect events, new
information or circumstances occurring after the date hereof.
Lear Corporation is one of the worlds leading suppliers of automotive seating systems,
electrical distribution systems and electronic products. The Companys world-class products are
designed, engineered and manufactured by a diverse team of about 75,000 employees at 210 facilities
in 36 countries. Lears headquarters are in Southfield, Michigan. Further information about Lear
is available on the Internet at http://www.Lear.com.
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