Hayes Lemmerz given interim access to $30 million of planned DIP loan

By Jennifer Lanning Drey

Portland, Ore., May 14 - Hayes Lemmerz International, Inc. was granted interim access to $30 million of its proposed $100 million debtor-in-possession financing from the U.S. Bankruptcy Court for the District of Delaware, according to a Thursday filing.

The financing will allow the company to continue operations in the ordinary course of business, according to a company news release.

The hearing for final approval of the DIP loan is June 10.

"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, Curtis J. Clawson, chief executive officer of Hayes Lemmerz, said in the release.

As previously reported, the DIP loan is being provided by lenders holding a majority of the company's pre-bankruptcy secured debt.

Deutsche Bank Trust Co. Americas is the administrative agent on the DIP facility.

Interest before the roll-up elevation will be Eurodollar plus 1,400 basis points or Base rate plus 1,300 bps, and interest after the roll-up elevation will be Eurodollar plus 700 bps or Base rate plus 700 bps.

The facility will mature on the earliest of six months from entry of the interim order if a final order has not been entered and termination in connection with an event of default.

Hayes Lemmerz will pay an upfront fee of 4% of the new money term loans, a 3% exit fee and consent fee of 8.5% of the common stock in the reorganization company to pre-bankruptcy lenders that did not choose to participate in the DIP financing but agreed to enter into the DIP financing agreement.

Hayes Lemmerz also received court approval of several first-day motions designed to ensure daily operations will continue normally during the restructuring, according to the release.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.