Hayes Lemmerz emerges from Chapter 11 protection

AP News
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Posted: Dec 21, 2009 5:22 PM

Wheel maker Hayes Lemmerz International Inc. said Monday it has emerged from Chapter 11 after cutting its total debt and obligations to retirees.

Hayes Lemmerz makes aluminum and steel wheels for cars, trucks, commercial trucks and trailers.

The company said it has reduced its outstanding debt to $240 million from the roughly $720 million it owed when it entered court protection in May. It also said its legacy costs for retiree health care and pension liabilities were expected to be cut to less than $75 million from more than $250 million.

It also secured exit financing including a new $200 million term loan.

CEO Curtis Clawson said the company was comfortable that its exit financing was sufficient to fund operating expenses and meet obligations.

The company's reorganization plan was accepted Nov. 3 in U.S. Bankruptcy Court in Delaware after creditors approved it.

Hayes Lemmerz is based in Northville, Mich.