Lear Corp. (LEA)

[RonnieD]

Actually, the two-year Dana bk from March 2006 to February 2008 also saw a company name change/cusip/complete new FINRA registration from the old, defunct Dana Corporation to the new holding co, owned by the creditors, Dana Holding. One of the first things they did was issue and sell 500M in more stock in "DAN".. so it's important to distinguish looking at this chart of Dana Holding that the late 2008 nosedive and recent rebound in price, all has happenned outside of the Chapter 11 process, which had already been completed.

Here is an outline from WSJ, this plan has since been approved by the judge, however there is still ambiguity concerning the fate of LEARQ holders and what portion they will get of the new stock. But there is a general belief that there will be somewhere around $20 million in new shares and/or subsciption rights/warrants to the new company when it emerges, that's why LEARQ is rock solid here and when the plan was approved it did not fall to a dime or less.

Under Lear's Chapter 11 restructuring plan, the lenders would forgive their debt in exchange for a new $600 million term loan plus all of a reorganized Lear's preferred stock, valued at $500 million, and a substantial share of the company's new common stock.

Unsecured creditors, including bondholders owed $1.3 billion, would receive a chunk of Lear's common stock plus warrants allowing them to purchase an additional 15% of the company's shares. They are expected to recover about 43% on their claims.

Lear last month filed court documents indicating that its creditors would recover far less in a liquidation. According to an analysis prepared by Alvarez & Marsal, lenders would recover only 36% on their $2.3 billion in claims if the Southfield, Mich., company were to liquidate.

At Friday's hearing, Lear will ask the court to approve an outline of the plan, called a disclosure statement. The court must approve the statement before creditors can begin voting on the plan.

Lear, which makes automotive seats and electronics, filed for Chapter 11 bankruptcy protection on July 7.

http://online.wsj.com/article/BT-CO-20090911-709208.html

stay up to date on Lear court proceedings and details here
http://www.kccllc.net/


Dana chart, all post-bk:
http://www.sec.gov/litigation/admin/2009/34-60657.pdf