Lear Prohibited From Tapping Canadian Plants for Cash


July 9 (Bloomberg) — Lear Corp., which filed for bankruptcy in the U.S. on July 7, was prohibited by a judge from tapping its Canadian plants for cash.

Lear, the world’s second-largest maker of automobile seats, owed its Canadian units about $82 million as of May 31, according to a report from the accounting firm RSM Richter, which was appointed information officer by the judge.

Lear’s Canadian operations “shall not make advances or transfers of funds to any of the applicants or any of their affiliates by way of loan or otherwise,” Ontario Superior Court Judge Sarah Pepall said in an order issued today that recognizes the U.S. bankruptcy proceedings. She made an exception for payments due in the ordinary course of business.

Full story

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s