DETROIT -- A crew of auto industry veterans and financial executives will replace six of Lear Corp.'s nine board current members when the world's second-largest seat supplier emerges from bankruptcy if the court overseeing its reorganization approves Lear's plan tomorrow.
Lear is seeking confirmation of its Chapter 11 reorganization plan at a hearing in U.S. Bankruptcy Court in New York.
The plan would scrub about $3.6 billion in debt from Lear's balance sheet and grant company lenders most of the reorganized company's equity in new common stock.
An exhibit to the plan Lear filed Nov. 2 said the following individuals would join Lear's board:
• Curtis Clawson, CEO of Hayes Lemmerz International Inc. Clawson is leading Hayes Lemmerz through its own reorganization in Chapter 11 bankruptcy. Clawson also presided over Hayes Lemmerz when it filed for Chapter 11 in 2001.
• Phil Murtaugh, former CEO of Chrysler's Asia-Pacific operations.
• Donald Runkle, former Delphi Corp. vice chairman and longtime General Motors executive and current CEO of EcoMotors International Inc., a startup developing a new, ultra high-efficiency diesel engine design.
• Greg Smith, former vice chairman of Ford Motor Co. and principal of consulting firm Greg C. Smith L.L.C.
• Thomas Capo, chairman of Dollar Thrifty Automotive Group Inc.
• Jonathan Foster, managing director of New York-based private equity firm Current Capital L.L.C. Foster has an extensive financial background and previously held positions at Bear Stearns, Lazard Ltd., Wachovia Securities and the Cypress Group.
Lear CEO Robert Rossiter will be the board's chairman, and current board members Conrad Mallett, CEO of Detroit-based Sinai-Grace Hospital, and Henry Wallace, former Ford group vice president and CFO, will remain on the board.
Lear spokesman Mel Stephens said the directors were selected with input from the company's lenders, bondholders and other stakeholders.
Lear filed for Chapter 11 bankruptcy July 7 after working for months to restructure a heavy debt load outside of court.
Lear, based in suburban Detroit, ranks No. 11 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $13.6 billion in 2008.