Interiors specialist Lear reportedly said on Wednesday that it has obtained $US800m in bank loans, suspended its dividend and sold an interior products division in an effort to strengthen its financial position.
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“Investors can be assured that the company is financially sound and focused on improving our longer-term operating performance,” Bob Rossiter, Lear’s chairman and chief executive, said in a statement cited by The Associated Press (AP). The bank loans will help the company refinance its 2007 debt maturities early, he said.
According to AP, Lear said it had reached an agreement in principle for the International Automotive Components Group to acquire Lear’s European Interiors Systems Division in exchange for 34% of the stock in IAC.
The company said it suspended the quarterly cash dividend to give it more liquidity given current auto industry conditions, the report added.
