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Hayes Lemmerz eyes DIP loan changes to secure $20 million commitment
By Caroline Salls
Pittsburgh, May 20 - Hayes Lemmerz International, Inc. requested court approval to amend its debtor-in-possession financing agreement before the final hearing to allow it to access a previously uncommitted $20 million portion of the DIP loan while market conditions are still favorable, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, the company obtained commitments for $80 million in DIP financing, with the potential of an additional $20 million.
The court granted Hayes Lemmerz interim access to $30 million of the $80 million in financing last week, and the final hearing is scheduled for June 10.
According to Tuesday's motion, the DIP arranger has advised the company that, if it acts immediately, it may secure binding commitments for the $20 million uncommitted portion of the DIP financing.
However, Hayes Lemmerz said the DIP arranger warned that the recently improved and currently favorable market conditions that resulted in the unexpected availability of the commitments could worsen very quickly, causing the commitment offers to be withdrawn.
Specifically, the company said some of the lenders offering the commitments do not plan to keep their offers open past midday on May 22.
In conjunction with the amendment, Hayes Lemmerz will be required to pay an $800,000 commitment fee.
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.
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