Hayes Lemmerz Asks For More Time For Turnaround Plan.

Automotive supplier Hayes Lemmerz International Inc. is seeking bankruptcy court approval for an extension of its exclusive right to file a reorganization plan and lobby for creditor support. According to court papers, the company wants up to April 15 to file a reorganization plan and until June 16 to lobby for creditor support.

If the court should turn down the company's request, its exclusive period to file a plan would have ended on Dec. 16, 2002, and its exclusive solicitation period would end Feb. 17. Because Hayes Lemmerz asked for the extension before Dec. 16, its exclusivity will remain intact until the hearing in the Court.

Hayes Lemmerz filed a reorganization plan last month and said it expects to emerge from Chapter 11 protection in the first half of 2003.

Under the plan, Hayes Lemmerz would streamline its manufacturing capacity, reduce fixed costs, strengthen oversight and financial reporting and renegotiate or reject unfavorable contracts and leases, the company said. In December the company received court approval to sign a seven-year contract to produce steel wheels for General Motors. The contract is worth $45 million to $50 million.

Court papers said that Hayes Lemmerz needs more time to work out challenges from its committee of unsecured creditors to certain liens and security interests imposed by the company's prepetition lenders.

Hayes Lemmerz supplies wheels, brakes, and suspension components to automotive and commercial highway markets. The company filed for Chapter 11 protection, citing declining market conditions and excessive debt burdens. It reported $2.8 billion in assets and $ 2.66 billion in liabilities as of April 30, 2001.