NORTHVILLE, Mich. -- The United States Bankruptcy Court for the District of Delaware has granted a number of Hayes Lemmerz International's motions in hearings held on June 10 and June 15. Hayes Lemmerz filed for Chapter 11 bankruptcy protection on May 11.
As previously announced, on May 14, the bankruptcy court granted interim approval of the company's first day motions seeking authority to have immediate access to $30 million in debtor-in-possession financing, to pay certain employee wages and benefits, as well as certain pre-petition amounts owed to suppliers and shippers and to take other actions designed to continue daily operations in the normal course of business. At the hearings held last week and yesterday, the court issued final orders permitting the company to take such actions.
Among other things, the Bankruptcy Court authorized the company to obtain post-petition secured financing of up to $100 million of new liquidity to fund the company's operations. This financing will also be available to the company's non-debtor foreign subsidiaries. The bankruptcy court also approved the company's motion to set a general bar date and procedures for filing proofs of claim. The bar date is July 27.
The court granted authorization for the company to pay pre-petition employee obligations, continue employee benefit programs post-petition and honor workers' compensation obligations. The company also received authorization to continue to pay the pre-petition invoices of essential vendors, certain pre-petition shipping, warehousing and import obligations and certain contractors' liens.
The bankruptcy court also issued a final "503(b)(9)" order confirming the grant of administrative expense status to pre-petition deliveries of goods within 20 days of the company's May 11 Chapter 11 filing, and also issued a final order prohibiting utility companies from discontinuing service to the company because of unpaid pre-petition invoices. Additionally, the court granted the company's motion seeking to have the U.S. Trustee to appoint a retiree committee to participate with the company in the process of modifying U.S. retiree benefits.