The agreement extends, through June 30, 2009, a waiver of Lear's existing defaults under its primary credit facility and an amendment of the financial covenants and certain other provisions of the primary credit facility. The agreement also expands Lear's ability to participate in the United States Department of Treasury's automotive supplier support programs. The Company and its lenders remain in active discussions regarding further modifications to its primary credit facility in light of existing and projected industry conditions.
"Despite the challenging conditions we are facing, we have a strong liquidity position and we are continuing to seek alternatives to address our capital structure," said Bob Rossiter, Lear's chairman, chief executive officer and president. "We appreciate the support and cooperation we have received from our supplier partners, our customers and our lenders as we work together through the industry downturn."