Hayes Lemmerz Creditors Protest $100M DIP Deal

Law360, New York (June 8, 2009, 12:00 AM EDT) -- The committee of unsecured creditors in automotive wheel giant Hayes Lemmerz International Inc.’s bankruptcy proceedings is protesting a $100 million debtor-in-possession financing facility, saying the terms of the agreement would “alter the level playing field that should exist in Chapter 11.”

In an objection filed Monday in the U.S. Bankruptcy Court for the District of Delaware, the committee said the proposed financing would unfairly expand the collateral base of the DIP lenders, dictate the terms of a plan of reorganization and effectively substantively consolidate the debtors...
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