CHICAGO -- Hayes Lemmerz International Inc. said on Monday the U.S. bankruptcy court in Delaware has approved its reorganization plan, paving the way for the auto parts maker to emerge from Chapter 11 protection.
The maker of wheels, brakes, powertrains and suspension components said its emergence from Chapter 11 is subject to completion of an exit financing facility arranged by Citigroup Inc. and Lehman Brothers Inc.
The company said it hopes to exit bankruptcy protection by the end of the second quarter.
Hayes Lemmerz, based in Northville, Mich., filed for Chapter 11 in December 2001 after excessive debt from earlier acquisitions saddled the company.
Under the reorganization plan, holders of secured claims will receive about $478.5 million in cash and 53.1 percent of the company's new common stock. Holders of senior note claims will receive $13 million in cash and 44.9 percent of the common stock, and holders of general unsecured claims will receive 2 percent of the stock.