Hayes Lemmerz obtains $550 million exit financing commitment, plans senior note offering

By Carlise Newman

Chicago, March 21 - Hayes Lemmerz International, Inc. said it has received a commitment for up to $550 million of exit financing from affiliates of Citigroup Inc. to support its plan of reorganization and said it will proceed with a senior note offering.

The exit financing will be used to pay $450 million to the company's pre-petition secured creditors and to provide working capital for its ongoing operations.

The proposed bank and senior notes financing are consistent with the reorganization plan.

No further details of the bank debt or note offering were available at press time. Calls to Hayes Lemmerz late Friday were not returned.

The Northville, Mich. auto parts maker also said that it has filed in court all of the necessary exhibits to its amended reorganization plan, keeping the company's voluntary Chapter 11 reorganization process on schedule.

The U.S. Bankruptcy Court for the District of Delaware approved Hayes Lemmerz's amended disclosure statement and reorganization plan on Feb. 20. At the time, the company announced that the reorganization plan was subject to confirmation by the bankruptcy court and the procurement of exit financing.

Hayes Lemmerz's successful emergence from bankruptcy remains contingent on a favorable vote of its creditors. The confirmation hearing has been set for April 9.

Hayes Lemmerz, its subsidiaries in the United States, and one subsidiary in Mexico filed for voluntary Chapter 11 reorganization on Dec. 5, 2001.

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