Hayes Lemmerz International has received bankruptcy court approval of up to US$100m of debtor-in-possession (DIP) financing, permitting it immediate access to up to $30m to continue operations.
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The DIP financing is being provided by lenders holding a majority of the company’s prepetition secured debt. Nearly all of the lenders holding the company’s prepetition secured debt executed consents approving the DIP loan. A final hearing on the DIP financing was set for 10 June.
The company also received approval of several first day motions to ensure operations would continue normally during the restructuring.
The ‘first-day’ relief approved by the US Bankruptcy Court for the District of Delaware also gave the company permission to pay certain prepetition and postpetition employee wages and benefits during its restructuring, to honour some pre-petition obligations to customers and to continue use of its cash management systems.
The company also received approval to pay pre-petition amounts owed to essential suppliers and freight carriers.
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By GlobalData“The court’s approval of our DIP financing will provide us with sufficient liquidity to fund operating expenses and meet obligations during the restructuring, assuring that we are able to conduct business as usual,” said chief executive officer Curtis Clawson.
Hayes Lemmerz files for Chapter 11
