Bankrupt Lear Corporation, which filed for Chapter 11 protection on 7 July, has received court approval of its first day motions at a court hearing in New York.
The court granted interim approval for the seating and electrics specialist to continue uninterrupted use of its cash resources.
“These cash resources, in addition to the new money debtor-in-possession financing that the company is seeking court approval of, will provide Lear with the financial flexibility to meet its ongoing financial obligations, including employee wages, healthcare benefits, supplier payments, and other operating expenses, as it realigns its capital structure,” the supplier said in a statement.
The court also issued a variety of final or interim orders that should ensure Lear continues to operate throughout the reorganisation process.
Its businesses outside the US and Canada were unaffected by the bankruptcy filing.
“We are pleased with the Court’s prompt approval of our first day motions,” said Lear chairman, CEO and president Bob Rossiter. “The court’s action ensures that we will be able to maintain regular operations and continue paying our employees, while meeting our obligations to our suppliers and serving our customers as we work to realign our capital structure as expeditiously as possible.”