Hayes Lemmerz reorganization confirmed

New York, May 12 - Hayes Lemmerz International, Inc. said its reorganization plan was confirmed by the U.S. Bankruptcy Court for the District of Delaware.

The Northville, Mich. auto parts supplier said the action should allow it to achieve its goal of emerging from Chapter 11 by the end of the second quarter of fiscal 2003.

Hayes Lemmerz said emerging from bankruptcy is conditional on the completion of an exit financing being arranged by Citigroup Inc. and Lehman Brothers Inc.

As previously announced, holders of prepetition secured claims will receive approximately $478.5 million in cash and 53.1% of the new common stock Holders of senior note claims will receive $13 million in cash and 44.9% of the new common stock, and holders of general unsecured claims will receive 2% of the new common stock.

Hayes Lemmerz, its U.S. subsidiaries and one subsidiary organized in Mexico filed for Chapter 11 on Dec. 5, 2001.

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