Lear (LEA) Plummets as Company Edges Closer to Bankruptcy

Shares of auto supplier Lear (NYSE: LEA) are getting whacked today as we are hearing numerous reports that Chapter 11 bankruptcy is becoming an increasingly likely option for the company. Shares of Lear have fallen from $18.12 over the last year (putting it at a market cap of over $1.4 billion) as the economic malaise has hit General Motors (OTC: GMGMQ) and Chrysler. In late-afternoon trading, Lear's stock is down more than 34% to under $0.60.

One source is indicating that Lear could announce a bankruptcy within several days. Apparently, Lear is having trouble digesting its massive debt load with lenders, several of which have already issued waivers extending expiration dates until Tuesday.

Other auto parts suppliers are having much better luck today: American Axle (NYSE: AXL) is up 0.6%, TRW Automotive (NYSE: TRW) is up 6%, ArvinMeritor (NYSE: ARM) is up 9% and BorgWarner (NYSE: BWA) is up 5%.

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