June 25 (Bloomberg) -- Lear Corp., the world’s second- largest maker of automotive seats, may file for bankruptcy protection by July 1, a person familiar with the matter said.

Lear, based in Southfield, Michigan, will file for Chapter 11 protection in New York as soon as June 29 and no later than July 1, said the person, who asked not to be identified because plans are private. Current lenders such as JPMorgan Chase & Co. will provide debtor-in-possession financing, the person said.

The partsmaker, which said on May 14 it sought to restructure debt outside of Chapter 11 even as auto sales collapsed, would join Visteon Corp. and Metaldyne Corp. as major suppliers to file for bankruptcy protection. More than 20 partsmakers have taken the step this year, according to the Original Equipment Suppliers Association trade group.

Lear fell 34 cents, or 39 percent, to close at 54 cents in New York Stock Exchange composite trading, the lowest since March 17. Mel Stephens, a spokesman, said Lear doesn’t comment on bankruptcy speculation and has nothing to report today.

Lear is renegotiating its borrowing after getting a waiver through June 30 on some conditions and a 30-day grace period for $38 million in interest payments.

OESA, the trade group, urged members yesterday to press Congress and President Barack Obama’s auto taskforce for $10 billion more in federal aid. The auto task force last week rejected those efforts, which would have expanded on $5 billion in Treasury loans and guarantees extended to partsmakers.

Stroock & Stroock & Lavan LLP will represent bondholders, said Susan Peters, a spokeswoman. Justin Perras, a JPMorgan spokesman, declined to comment. Simpson Thacher & Bartlett LLP will represent creditors. New York-based investment bank Miller Buckfire & Co. is giving Lear advising help, the person said.

Durc Savini, a managing director and head of auto practice at Miller Buckfire, didn’t immediately respond to a request for comment. Danzey Burnham, director of global business development at Simpson Thacher & Bartlett, didn’t immediately respond to a request for comment.

To contact the reporter on this story: Craig Trudell in Southfield, Michigan at ctrudell@bloomberg.net; Lauren Coleman-Lochner in New York at

Last Updated: June 25, 2009 17:36 EDT