UPDATE 1-Lear plan of restructuring confirmed by US judge

Thu Nov 5, 2009 5:13pm GMT
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* Judge confirms Lear plan of reorganization

* Lear to restructure $3.6 bln in debt

* $950 million financing available for capital needs

* Plan of reorganization effective Nov. 9--Lear

By Chelsea Emery

NEW YORK, Nov 5 (Reuters) - A judge confirmed on Thursday Lear Corp's LEARQ.PK plan of reorganization, putting the company on track to emerge from bankruptcy by Nov. 9.

Under the plan, the maker of seats, door panels and electrical distribution systems for cars will restructure $3.6 billion of its pre-bankruptcy debt and shareholders will be wiped out. The company has obtained $950 million in new financing for business expenses.

Some bondholders and creditors will receive new common stock and become the new owners of the company.

"It's extremely important that the company move forward," said U.S. Bankruptcy Judge Allan Gropper in a hearing in New York.  Continued...

 
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