Hayes Lemmerz obtains approval to sell substantially all Laredo assets

By Alice Popovici

New York, Sept. 23 - Hayes Lemmerz International, Inc. received court approval of the bid procedures for the proposed sale of substantially all of the assets of Hayes Lemmerz International - Laredo Inc. to Harvey Holdings, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, under the stalking horse agreement, Harvey would purchase the assets for $1, plus the amount of cash in all of Hayes Lemmerz International - Laredo subsidiary Industrias Fronterizas HLI, SA de CV's bank accounts at closing and the assumption of specified liabilities.

Hayes Lemmerz said there will also be future consideration based on achieving revenues on specific programs.

If the court approves the sale to a buyer other than Harvey, Hayes Lemmerz will reimburse up to $100,000 of Harvey's sale-related expenses.

Bids are due by 5 p.m. ET on Oct. 19, and the auction is scheduled for Oct. 21.

Hayes Lemmerz is a Northville, Mich., maker of automotive and commercial highway wheels. It filed for Chapter 11 on May 12. Its case number is 09-11655.

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