Hayes Lemmerz International Inc has emerged from its voluntary Chapter 11 reorganization. The company, substantially all its United States subsidiaries, and one subsidiary organized in Mexico successfully concluded its reorganization, after completing all required actions and satisfying all remaining conditions to its plan of reorganization. The firm now has a more manageable capital structure and a reduced level of debt.
The total financing package is valued at $800 million and includes: a $100-million senior secured revolving credit facility maturing in five years; a $450-million senior secured term loan facility maturing in six years; and $250 million of senior unsecured notes, maturing in seven years.
Six of seven members of the new board of directors of Hayes Lemmerz are in place, including Curtis J Clawson, chief executive officer; Laurence M Berg, senior partner, Apollo Management LLP; Dr William H Cunningham, James L Bayless Chair for Free Enterprise, The University of Texas at Austin; Steve Martinez, principal, Apollo Management; Henry D G Wallace, retired group vice-president, Ford Motor Co; and Richard F Wallman, senior vice-president and chief financial officer, Honeywell International Inc.
New shares of Hayes Lemmerz common stock, being issued to certain creditors in accordance with the plan of reorganization, are expected to be publicly traded on the over-the-counter market. The company has applied for listing on the NASDAQ Stock Exchange.
