Tier One automotive supplier Hayes Lemmerz International Inc. reports that it has emerged from its Chapter 11 bankruptcy reorganization — an effort that it initiated in May following negotiation with its lenders and creditors. The producer of aluminum and steel wheels for passenger cars and light trucks, and of steel wheels for commercial trucks and trailers, said its creditors “overwhelmingly” endorsed its strategy.
As of now, Hayes Lemmerz’ previous debt obligation of approximately $720 million has been reduced to approximately $240 million, and its legacy U.S. retiree medical and pension liabilities of over $250 million are expected to be less than $75 million.
Included in the $240 million of funded indebtedness is a new finance arrangement, with a new $200-million term loan.
The bankruptcy covered several Hayes Lemmerz U.S. subsidiaries and one (non-operating) international subsidiary. During the course of the reorganization, the group installed a new global organization it said is more strategically focused for specific regions.
"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," stated chairman and CEO Curtis J. Clawson.
Clawson also thanked Hayes’ suppliers and employees, and expressed confidence that the company’s new financing will provide the liquidity to fund operating expenses and meet all of obligations. “Hayes emerges today as a leaner, stronger competitor well positioned to extend our leadership in the global wheel market,” he concluded.
Hayes Lemmerz Exits Bankruptcy
Reorganized wheel manufacturer reduces debt by $480 million, cuts liabilities