NORTHVILLE, Mich. — Hayes Lemmerz International has emerged from its voluntary Chapter 11 reorganization. As previously reported, creditors overwhelmingly voted in favor of the company’s Plan of Reorganization, which was confirmed on Nov. 3, by the U.S. Bankruptcy Court for the District of Delaware. The company filed for Chapter 11 relief on May 11 of this year.
The company’s total consolidated prepetition funded indebtedness of approximately $720 million has been reduced to approximately $240 million. In addition, the company’s legacy retiree medical and pension liabilities in the United States of more than $250 million are expected to be less than $75 million.
In conjunction with its emergence from Chapter 11, Hayes completed its exit financing facility. The facility consists of a new $200 million term loan (which amount is included in the $240 million of funded indebtedness shown above).
"Hayes has continued to win significant new business throughout the restructuring process, and we are extremely grateful to our customers for their confidence in our future," said Curtis Clawson, chairman and chief executive officer of the company. "We also appreciate the support of our suppliers, who have remained loyal to Hayes during our restructuring efforts. Our employees did a great job of taking care of our customers and making big strides in safety and productivity during the Chapter 11 process. We are comfortable that our exit financing will provide us with the liquidity to fund operating expenses and meet all of our obligations. Hayes emerges today as a leaner, stronger competitor well positioned to extend our leadership in the global wheel market."
