Hayes Lemmerz files plan; lenders to own stock, manufacturing plants

By Caroline Salls

Pittsburgh, July 6 - Hayes Lemmerz International, Inc. filed its plan of reorganization and related disclosure statement Monday under which its debtor-in-possession and pre-bankruptcy secured lenders would own substantially all of the common stock of the reorganized company and all of its global manufacturing locations, according to a company news release.

As previously reported, the key terms of the plan were prearranged with the lenders before Hayes Lemmerz filed for bankruptcy. As a result, the company said it has the overwhelming support of its senior secured lenders regarding the proposed reorganization.

Plan creditor treatment will include:

• Holders of secured tax claims and other priority claims will recover 100% in cash;

• Holders of other secured claims will recover 100% either in cash, through the return of the collateral securing the claim or through reinstatement of the claim;

• Intercompany claims will, with the consent of the required DIP lenders, be either released, waived and discharged, contributed to the capital of the obligor corporation, receive dividends or remain unimpaired;

• Subsidiary interests will be unaffected;

• Holders of pre-bankruptcy secured obligation claims will receive a share of the pre-bankruptcy secured lender distribution property;

• Noteholders will receive a share of noteholder distribution property;

• Holders of other unsecured claims will receive a share of unsecured claimholder distribution property, including $250,000 in cash, provided that the pre-bankruptcy secured lenders and other unsecured creditors vote to accept the plan; and

• Holders of subordinated securities claims, interests in Hayes and old preferred stock and old preferred stock options will receive no distribution under the plan.

The company said it is on track with its restructuring process and expects the plan to be submitted to the court for confirmation as early as September.

A hearing on approval of the disclosure statement is scheduled for July 30.

Hayes Lemmerz is a Northville, Mich., maker of automotive and commercial highway wheels. It filed for Chapter 11 on May 12 in the U.S. Bankruptcy Court for the District of Delaware. Its case number is 09-11655.

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