SOUTHFIELD, Mich. -- Lear Corp. has received court approval of its first day motions at a hearing in the United States Bankruptcy Court for the Southern District of New York. Lear filed to reorganize its U.S. and Canadian businesses under Chapter 11 on July 7.

The court granted interim approval for the company to continue uninterrupted use of its cash resources. These cash resources, in addition to the new money debtor-in-possession financing that the company is seeking court approval of, will provide Lear with the financial flexibility to meet its ongoing financial obligations, including employee wages, healthcare benefits, supplier payments and other operating expenses, as it realigns its capital structure.

The court also issued a variety of orders on either a final or interim basis that will ensure that Lear continues to operate uninterrupted throughout the reorganization process. The first day motions granted by the court ensure that the filing will not impact Lear's day-to-day operations.

"We are pleased with the court's prompt approval of our first day motions," said Bob Rossiter, Lear's chairman, chief executive officer and president. "The court's action ensures that we will be able to maintain regular operations and continue paying our employees, while meeting our obligations to our suppliers and serving our customers as we work to realign our capital structure as expeditiously as possible."