NORTHVILLE, Mich. -- Hayes Lemmerz International’s majority lenders have reached an agreement regarding a restructuring of the company's debt. Certain of these lenders will provide a debtor-in-possession (DIP) loan to the company, which will make available up to $100 million of additional liquidity (subject to certain terms and conditions), to provide the company with operating funds during the restructuring. Including the DIP loan, the company will have total liquidity of approximately $138 million.

To facilitate the restructuring, the company and certain of its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. Also included in the filings is Hayes Lemmerz Finance LLC - Luxembourg S.C.A., a borrower under the company's secured credit facility and issuer of its senior notes. As a result of the restructuring, the company expects to eliminate a significant portion of its existing debt. Upon confirmation of a plan of reorganization, it is anticipated that the DIP lenders will convert certain of their loans into equity and will own substantially all of the equity of the reorganized company.

"The Chapter 11 filings were precipitated by an unprecedented slowdown in industry demand and a tightening of credit markets," said Curtis Clawson, chairman and chief executive officer. "These filings will allow us to reduce our debt and restructure our balance sheet. We fully expect to emerge from Chapter 11 as a stronger, more competitive company than we are today."

The filings were made pursuant to a "pre-negotiated" restructuring plan with the support of a majority of the company's secured lenders. As a result, the company expects to complete its restructuring process on an accelerated basis.

The company said it expects to continue its operations in the normal course of business during the financial restructuring process with no interruption in its supply to customers. Liquidity for ongoing operations will be provided by the DIP financing.

"We fully expect our day-to-day operations will continue uninterrupted. I want to personally assure our customers, suppliers and employees that we will continue to focus on being a premier automotive supplier by satisfying customers, being a low-cost producer and having the best people," Clawson stated.

"We have been executing our operating plan by diversifying our global customer base, focusing on our core wheel business and expanding our operations in leading-cost regions. We are focusing on the right customers, the right products and the right geography. We expect to emerge from Chapter 11 with a strong balance sheet and with our company better positioned to succeed as the marketplace recovers," Clawson continued.

The company has filed a variety of first day motions, including a motion seeking approval of the DIP loan, that, with court approval, will allow it to continue to conduct business without interruption. These motions are designed to minimize any impact on the company's customers, suppliers and employees. During the reorganization process, suppliers will be paid in the ordinary course of business for goods and services purchased by the company post-petition.