Lear, the auto industry’s second-largest car-seat maker, yesterday filed for Chapter 11 bankruptcy protection, as the sharp decline in auto sales claims another victim in the car-parts sector.

As part of the restructuring, the Southfield, Mich.-based company inked a deal with JPMorgan Chase and Citigroup to obtain $500 million in debtor-in-possession financing to enable it to continue running while in bankruptcy.

The outlook for firms like Lear grew even dimmer after President Obama’s auto task force last week rejected requests for the auto-supply industry to be granted up to $10 billion in aid.

Lear hired Kirkland & Ellis LLP as well as restructuring firm Miller Buckfire to help it sort through its reorganization plans.

The auto supplier will need any reorganization plan approved by a majority of its debtholders, which could make for a much more protracted process than what Chrysler and GM are undergoing, one debtor said.