Hayes Lemmerz amends credit agreement

New York, Jan. 29 - Hayes Lemmerz International, Inc. said it amended its senior secured credit facility, easing the leverage and interest coverage ratio covenants for the fourth quarter of fiscal 2008 and each quarter of fiscal 2009.

"This amendment provides Hayes Lemmerz with additional financial flexibility as we continue to take aggressive actions to reduce costs and preserve cash in response to extremely difficult industry and economic conditions. We appreciate the continuing support of our lending group during these difficult times," said Curtis Clawson, president, chief executive officer and chairman, in a news release.

The amendment also increases the interest rate on the term and revolving loans, reduces the maximum amount of permitted capital expenditures, requires the company to use the proceeds from asset sales to prepay the term loan and makes a number of other changes.

Hayes Lemmerz will also pay fees to the lenders.

But the company added: "In light of the extremely difficult industry and economic conditions, no assurance can be given that the company will be able to satisfy the amended covenants."

Hayes Lemmerz is a Northville, Mich., maker of automotive and commercial highway wheels.

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