Hayes Lemmerz International, Inc. has reached an agreement among its DIP lenders, pre-petition secured lenders and the Official Committee of Unsecured Creditors on the terms of a plan of reorganization.
The company also announced that on September 2, the Bankruptcy Court for the District of Delaware approved the company's disclosure statement with respect to the first amended plan of reorganization incorporating the terms of the agreement among these parties. The approval of the disclosure statement allows the company to move forward in soliciting acceptances of the plan from its pre-petition secured lenders and other creditors. The hearing to confirm the plan has been scheduled for October 15.
"We appreciate the efforts of our DIP lenders, pre-petition secured lenders and the Creditors' Committee in developing a consensual plan of reorganization that is in the best interests of all creditors," said Curtis J. Clawson, Chairman and Chief Executive Officer. "We look forward to emerging from our restructuring as a leaner, stronger competitor well-positioned to continue our leadership in the global wheel market. Our strategy remains intact: extend our lead in high-growth regions of the world in each of our major market segments--aluminum wheels, steel wheels and commercial highway wheels. Our customers and suppliers will see no change in our business during or following our restructuring."
The company also confirmed that it remains on track with its other restructuring goals. It has adequate DIP financing available and enjoys the support of its DIP lenders, pre-petition secured lenders and the Creditors' Committee in its restructuring efforts. The company is taking the necessary steps to address its pension and retiree medical liabilities. The company is in negotiations with representatives of its retirees and the Pension Benefit Guaranty Corporation and is optimistic that it will reach a consensual resolution to reduce these liabilities.As announced on May 11, the company, certain of its U.S. subsidiaries and one (non-operating) international subsidiary filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. More information on the company's restructuring is available on the "Restructuring Information" page on the Company's website ( www.hayes-lemmerz.com), or through the company's Restructuring Information Hotline, 1-888-753-5296.