Hayes Lemmerz Files Chapter 11 Again
Yesterday afternoon Hayes Lemmerz, the world’s largest wheel manufacturer, filed for so-called Chapter 11 bankruptcy protection for the second time this decade. The company was last in this position between November 2001 to June 2003 when it formulated a strategy of focusing on core business, namely steel and aluminium car wheels and truck steels wheels. Now having sold virtually all the areas that don’t fit into these categories, Hayes Lemmerz has collapsed under the heavy burden of debts. The news follows an earlier announcement that Hayes had received a written warning that it faces listing compliance issues for filling full-year 2008 results too late.
In a statement Hayes Lemmerz International, Inc. said the majority of lenders holding the company’s secured debt have reached an agreement regarding restructuring. Some will provide a debtor-in-possession loan to the company, which will make available up to $100 million of additional liquidity, to enable it to continue operating during the restructuring period.