U.S. car parts maker Lear Corp files for bankruptcy

NEW YORK (Reuters) - U.S. auto parts maker Lear Corp LEAR.PK filed for Chapter 11 bankruptcy protection on Tuesday, a day after setting out plans to restructure its $3.6 billion debt burden under a proposed deal with creditors.

The filing represents the largest in a string of recent failures of auto parts suppliers and highlights the pressure on the sector from sharply curtailed production and bankruptcies at automakers General Motors Corp and Chrysler.

Lear said in a statement that the restructuring had won the support of the majority of its creditors and that it expected to submit the proposals to the court within 60 days.

Later in the day, Lear won court approval to use its cash to meet day-to-day obligations, including wages and taxes.

Under plans set out on Monday, Lear would convert $3.6 billion of debt into a combination of new debt, convertible stock and equity warrants.

The company also received commitments for $500 million of debtor-in-possession financing from a syndicate of secured lenders led by JPMorgan Chase & Co (JPM.N) and Citigroup (C.N).

The federal judge overseeing the first hearings of the case, Martin Glenn of U.S. Bankruptcy Court in Manhattan, scheduled a July 30 hearing for final approval of the DIP.

Glenn's colleague Allan Gropper will take over the case when he returns in mid-July. No reason was given for his absence.

The bankruptcy plan was supported by about 68 percent in principal amount of its secured lenders and more than 50 percent in principal amount of its bondholders.