Hayes Lemmerz Files Reorganization Plan

Hearing slated for July 30, 2009


Hayes Lemmerz International Inc. has filed its proposed plan of reorganization and disclosure statement with the U.S. Bankruptcy Court for the District of Delaware.

If confirmed by the court, the plan provides that the company's debtor-in-possession (DIP) lenders and pre-petition secured lenders would own substantially all of the common stock of the reorganized company and all of its global manufacturing locations upon emergence from Chapter 11.

A hearing has been scheduled for July 30 to consider approval of the disclosure statement, which must be deemed adequate by the court. Once that is approved, Hayes Lemmerz can solicit acceptances and seek approval of the plan, which also must be approved by the court.

Hayes Lemmerz had taken some downsizing actions as early as 2008, with the closing of its Gainesville, GA aluminum wheel plant. More downsizing is called for as part of its pre-negotiated bankruptcy actions. In June, the company was granted access to DIP financing totalling $100 million to pay claims and suppliers.

The company confirms that it is on track within the targeted restructuring process and foresees that the final plan could be submitted for court consideration as early as September.

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