Hayes Lemmerz creditor's objection overruled, plan becomes effective

By Caroline Salls

Pittsburgh, Dec. 16 - The bankruptcy court overruled Hayes Lemmerz International, Inc. creditor Solus Alternative Asset Management LP's objection to the company's proposed exit financing and deemed the plan of reorganization confirmation order effective as of Wednesday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

According to Solus' objection, the plan confirmation order requires Hayes Lemmerz to obtain exit financing on terms that have been disclosed to the court.

However, Solus said the exit facility credit agreement submitted on Dec. 11 differs from the terms originally presented to the court.

Specifically, Solus said the original exit facility terms called for an $85 million to $125 million new money term loan, but the recently filed exit credit agreement includes a $150 million new money term loan.

In addition, Solus said the proposed arranger fee for Deutsche Bank has been increased to $3.5 million from $3 million.

Judge Mary F. Walrath said in Wednesday's order that the exit facility contains the terms and conditions disclosed at the confirmation hearing, with changes that are consistent with the exit term sheet.

Hayes Lemmerz is a Northville, Mich., maker of automotive and commercial highway wheels. It filed for Chapter 11 on May 12, 2009. Its case number is 09-11655.

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