US Bank Joins Fight Over Hayes Lemmerz DIP Deal

Law360, New York (June 9, 2009, 12:00 AM EDT) -- Joining unsecured creditors in opposition to Hayes Lemmerz International Inc.’s prepackaged $200 million debtor-in-possession facility, U.S. Bank NA has argued that the financing proposal runs roughshod over the rights of creditors other than the DIP providers.

As indenture trustee for noteholders under a 2007 loan to the automotive wheel giant, U.S. Bank objected Monday to the proposed DIP package in the U.S. Bankruptcy Court for the District of Delaware, saying the proposal hinders the noteholders’ recovery of $177 million they extended to the debtor and hands...
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