A U.S. Bankruptcy Court judge in Delaware on Monday approved Hayes Lemmerz International Inc.'s Chapter 11 reorganization plan. The auto supplier hopes to emerge from bankruptcy by the end of June.
Under the plan, secured claimants will be paid collectively with $487.5 million in cash and hold 53.1 percent of the new common stock. Senior note-holders will be paid with $13 million in cash and 44.9 percent of the new common stock. Unsecured claimants will receive 2 percent of the new common stock.
Hayes Lemmerz of Northville Township, Mich., has arranged post-Chapter 11 financing with Citigroup Inc. and Lehman Bros. Inc.
Hayes Lemmerz employs 11,000 worldwide and manufactures wheels, brakes and suspension components and systems for the auto industry. The company filed its Chapter 11 petition Dec. 5, 2001.
Terry Kosdrosky is a staff reporter for Crain's Detroit Business, a sister publication of Automotive News.