Hayes Lemmerz International, Inc. Receives Court Approval of First Day Motions
NORTHVILLE, Mich. May 14, 2009 -- Hayes Lemmerz International, Inc. ("Hayes" or the "Company") announced today that it has received Court approval of up to $100 million of debtor-in-possession ("DIP") financing, permitting it immediate access to up to $30 million to continue operations in the ordinary course of business. The DIP financing is being provided by lenders holding a majority of the Company's prepetition secured debt. Nearly all of the lenders holding the Company's prepetition secured debt executed consents approving the DIP loan. A final hearing on the DIP financing has been set for June 10, 2009.
The Company also received approval of several first day motions designed to ensure daily operations will continue normally during the restructuring. The "first-day" relief approved by the Honorable Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware also provides the Company with permission to pay certain prepetition and postpetition employee wages and benefits during its restructuring, to honor certain prepetition obligations to customers and to continue use of its cash management systems. The Company also received approval to pay certain prepetition amounts owed to essential suppliers and freight carriers.
"The court's approval of our DIP financing will provide us with sufficient liquidity to fund operating expenses and meet obligations during the restructuring, assuring that we are able to conduct business as usual," said Chief Executive Officer Curtis J. Clawson. "As we use the Chapter 11 process to strengthen our balance sheet, our operations around the globe remain focused on being a premier automotive supplier by satisfying customers, being a low-cost producer and having the best people."
As announced on May 11, 2009, 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, 888.753.5296 (for calls in the USA) or +1.734.737.5086 (for calls outside the USA).