Hayes Lemmerz International, Inc. Reaches Accord With Secured Creditors; Company Announces DIP Facility of Up to $100 Million an
12 Mai 2009 - 3:39AM
PR Newswire (US)
Initiates Pre-Negotiated Restructuring for U.S. Operations; Company
Continues to Operate Business as Usual NORTHVILLE, Mich., May 11
/PRNewswire-FirstCall/ -- Hayes Lemmerz International, Inc.
(NasdaqGM: HAYZ) ("Hayes") announced today that lenders holding a
majority of the Company's secured debt have reached an agreement
regarding a restructuring of the Company's debt. Certain of these
lenders will provide a debtor-in-possession ("DIP") loan to the
Company, which will make available up to $100 million of additional
liquidity (subject to certain terms and conditions), to provide the
Company with operating funds during the restructuring. Including
the DIP loan, the Company will have total liquidity of
approximately $138 million. To facilitate the restructuring, the
Company and certain of its U.S. subsidiaries filed voluntary
petitions for relief under Chapter 11 of the U.S. Bankruptcy Code
in the District of Delaware. Also included in the filings is Hayes
Lemmerz Finance LLC - Luxembourg S.C.A., a borrower under the
Company's secured credit facility and issuer of its senior notes.
As a result of the restructuring, the Company expects to eliminate
a significant portion of its existing debt. Upon confirmation of a
plan of reorganization, it is anticipated that the DIP lenders will
convert certain of their loans into equity and will own
substantially all of the equity of the reorganized Company. "The
Chapter 11 filings were precipitated by an unprecedented slowdown
in industry demand and a tightening of credit markets," said Curtis
Clawson, Chairman and Chief Executive Officer. "These filings will
allow us to reduce our debt and restructure our balance sheet. We
fully expect to emerge from Chapter 11 as a stronger, more
competitive company than we are today." The filings were made
pursuant to a "pre-negotiated" restructuring plan with the support
of a majority of the Company's secured lenders. As a result, the
Company expects to complete its restructuring process on an
accelerated basis. Company Intends To Continue Operations In The
Ordinary Course Of Business The Company expects to continue its
operations in the normal course of business during the financial
restructuring process with no interruption in its supply to
customers. Liquidity for ongoing operations will be provided by the
DIP financing. "We fully expect our day-to-day operations will
continue uninterrupted. I want to personally assure our customers,
suppliers and employees that we will continue to focus on being a
premier automotive supplier by satisfying customers, being a
low-cost producer and having the best people," Clawson stated. "We
have been executing our operating plan by diversifying our global
customer base, focusing on our core wheel business and expanding
our operations in leading-cost regions. We are focusing on the
right customers, the right products and the right geography. We
expect to emerge from Chapter 11 with a strong balance sheet and
with our Company better positioned to succeed as the marketplace
recovers," Clawson continued. The Company has filed a variety of
first day motions, including a motion seeking approval of the DIP
loan, that, with court approval, will allow it to continue to
conduct business without interruption. These motions are designed
to minimize any impact on the Company's customers, suppliers and
employees. During the reorganization process, suppliers will be
paid in the ordinary course of business for goods and services
purchased by the Company post-petition. The Company's principal
bankruptcy attorneys are Skadden, Arps, Slate, Meagher & Flom,
LLP. Lazard Freres & Co., LLC serves as the Company's financial
advisor. AlixPartners, LLP serves as the Company's restructuring
advisor. More information on the Company's restructuring is
available on the "Restructuring Information" page on the Company's
website (http://www.hayes-lemmerz.com/), or through the Company's
Restructuring Information Hotline, 888.753.5296 (for calls in the
USA) or +1.734.737.5086 (for calls outside the USA). This press
release is for informational purposes only and is not a
solicitation to accept or reject the pre-negotiated plan. About
Hayes Lemmerz International, Inc. Originally founded in 1908, Hayes
Lemmerz International, Inc. is a leading worldwide producer of
aluminum and steel wheels for passenger cars and light trucks and
of steel wheels for commercial trucks and trailers. The Company is
also a supplier of automotive powertrain components. The Company
has global operations with 23 facilities, including business, sales
offices and manufacturing facilities, located in 12 countries
around the world. The Company sells products to every major North
American, Asian and European manufacturer of passenger cars and
light trucks and to commercial highway vehicle customers throughout
the world. Forward Looking Statements Some of the statements in
this press release constitute "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, including, without limitation, certain
statements regarding the reorganization of the Company's business
and finances to improve its liquidity and operational results, the
sufficiency of liquidity to be provided by the debtor-in-possession
financing, anticipated authorizations being requested of the
Bankruptcy Court and expectations as to the ability to make
post-petition payments. Words such as "will," "expects,"
"believes," "intends" and similar expressions are used to identify
these forward-looking statements. Forward-looking statements are
based on current expectations, estimates and projections concerning
future developments and their potential effects upon the Company
and its subsidiaries. These statements are only predictions and as
such are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict and
actual results may differ materially from those projected. Factors
that could cause actual results to differ materially from those
projected in such forward-looking statements include risks and
uncertainties in connection with the Chapter 11 proceedings and
their possible effects on the Company and its subsidiaries as well
as other risks described under "Risk Factors" and elsewhere in the
Company's Annual Report on Form 10-K and subsequent filings with
the Securities and Exchange Commission. The Company does not
intend, and is under no obligation, to update any particular
forward-looking statements, whether as a result of new information,
future events or otherwise. DATASOURCE: Hayes Lemmerz
International, Inc. CONTACT: Marika Diamond, +1-888-753-5283, or
+1-734-737-5089, of Hayes Lemmerz International, Inc. Web Site:
http://www.hayes-lemmerz.com/
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