Skip to main content Skip to main navigation Skip to footer

Press Room Lear Reaches Agreement With Lenders to Extend Waiver Under Its Primary Credit Facility

PRNewswire
SOUTHFIELD, Mich.
(NYSE:LEA)

SOUTHFIELD, Mich., May 13 /PRNewswire-FirstCall/ -- Lear Corporation (NYSE: LEA), a leading global supplier of automotive seating systems, electrical distribution systems and electronic products, announced today that it has reached an agreement with its lenders to extend the waiver under its primary credit facility.

Today's agreement extends, through June 30, 2009, a waiver of Lear's existing defaults under its primary credit facility and an amendment of the financial covenants and certain other provisions of the primary credit facility. The agreement also expands Lear's ability to participate in the United States Department of Treasury's automotive supplier support programs. The Company and its lenders remain in active discussions regarding further modifications to its primary credit facility in light of existing and projected industry conditions.

"Despite the challenging conditions we are facing, we have a strong liquidity position and we are continuing to seek alternatives to address our capital structure," said Bob Rossiter, Lear's chairman, chief executive officer and president. "We appreciate the support and cooperation we have received from our supplier partners, our customers and our lenders as we work together through the industry downturn."

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, 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 Company's customers and suppliers, changes in actual industry vehicle production levels from the Company's 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 Company's suppliers, labor disputes involving the Company or its significant customers or suppliers or that otherwise affect the Company, the Company's 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 Company's warranty or product liability costs, risks associated with conducting business in foreign countries, competitive conditions impacting the Company's key customers and suppliers, the cost and availability of raw materials and energy, the Company's 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 Company's ability to align its vendor payment terms with those of its customers, the Company's ability to access capital markets on commercially reasonable terms, further impairment charges initiated by adverse industry or market developments, the Company's ability to restructure its outstanding debt, the possibility that the Company may be forced to seek protection under the U.S. Bankruptcy Code and other risks described from time to time in the Company's Securities and Exchange Commission filings.

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 world's leading suppliers of automotive seating systems, electrical distribution systems and electronic products. The Company's world-class products are designed, engineered and manufactured by a diverse team of 80,000 employees at 210 facilities in 36 countries. Lear's headquarters are in Southfield, Michigan, and Lear is traded on the New York Stock Exchange under the symbol [LEA]. Further information about Lear is available on the Internet at http://www.lear.com.

SOURCE: Lear Corporation

Web site: http://www.lear.com/

Posted on 5/13/2009

View all
Back To Top