Hayes Lemmerz Announces Unsecured Note Issuance
Hayes Lemmerz International, Inc. has announced its intention to sell up to 225 million US dollars of senior unsecured notes due in 2010. Hayes Lemmerz intends to use the net proceeds from the offer to make payments in connection with its Plan of Reorganisation to support its emergence from Chapter 11.
Hayes Lemmerz, its U.S. subsidiaries and one subsidiary organised in Mexico filed voluntary petitions for reorganisation under Chapter 11 of the Bankruptcy Code in the U.
S. Bankruptcy Court for the District of Delaware on December 5, 2001.The company later announced that the U.
S. Bankruptcy Court for the District of Delaware confirmed the modified Plan of Reorganisation that was filed by the Company and certain of its subsidiaries. Confirmation of the modified Plan should permit the Company to meet its goal of emerging from Chapter 11 prior to the end of the second quarter of fiscal 2003.
”We are pleased that our modified Plan has been confirmed by the Court and was supported by an overwhelming majority of our creditors,” said Curtis Clawson, Chairman and Chief Executive Officer of Hayes Lemmerz. “This is wonderful news for our employees, customers, and suppliers, and I want to thank all of them for their support.”Mr.
Clawson further commented, “Our emergence marks the end of what may be the most difficult chapter in our company’s history. We have worked diligently over the past year and a half to rebuild Hayes Lemmerz by strengthening the Company’s operational and financial performance. The actions we have taken to enhance performance, streamline operations and compete effectively in today’s market will continue after emergence.
We will continue to aggressively pursue our goals of satisfying our customers, becoming a low-cost producer and having the best people.”As previously announced and in accordance with the modified Plan, holders of prepetition secured claims will receive approximately 478.5 million US dollars in cash and 53.
1 per cent of the New Common Stock. Holders of senior note claims will receive 13 million US dollars in cash and 44.9 per cent of the New Common Stock, and holders of general unsecured claims will receive 2 per cent of the New Common Stock.
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