Hayes Lemmerz Pitches Plan To Give Lenders Control

Law360, New York (July 6, 2009, 12:00 AM EDT) -- Bankrupt automotive wheel manufacturer Hayes Lemmerz International Inc. has filed a Chapter 11 exit plan proposing to allow debtor-in-possession financing providers to take a majority stake in the reorganized company, leaving $250,000 for general unsecured creditors and nothing for existing stockholders.

The Northfield, Mich.-based firm filed its proposed Chapter 11 plan and disclosure statement on Thursday in the U.S. Bankruptcy Court for the District of Delaware, offering to convert $100 million in DIP financing into a secured term loan in addition to offering the lenders an...
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