Hayes Lemmerz Files Reorganisation Plan and Disclosure Statement

Hayes Lemmerz International has a plan….a reorganisation plan, that is. The company announced on July 3 it has filed a proposed plan of reorganisation and disclosure statement with the United States Bankruptcy Court for the District of Delaware. If confirmed by the court, the plan provides that the company’s debtor-in-possession (DIP) lenders and prepetition secured lenders would own substantially all the reorganised company’s common stock and all of its global manufacturing locations upon its emergence from chapter 11 bankruptcy.

The plan and the disclosure statement must first gain the court’s approval. Before Hayes Lemmerz can solicit acceptances and seek the plan’s approval, the court must approve the adequacy of the disclosure statement. A hearing to consider approval of the disclosure statement is scheduled for July 30th.

The material terms of the plan were prearranged with the DIP lenders and prepetition secured lenders prior to the commencement of the company’s reorganisation cases. Accordingly, Hayes Lemmerz has the overwhelming support of its senior secured lenders regarding the targeted reorganisation contemplated by the plan. Hayes Lemmerz confirms that it is on track within the targeted restructuring process and foresees that the final plan could be submitted for court consideration as early as September.