A group of Hayes Lemmerz International bank debt holders are seeking a reorganization plan separate from the one pursued by CIBC World Markets, which is agent to the pre-petition lenders who hold about $750 million in claims. The exact details of the plans could not be determined, but investors said the plan pursued by the dissident lenders would likely offer lenders more juice. Officials from CIBC and its counsel did not return calls by press time.
Some lenders are stewing, wanting more value to come to bank lenders as the senior creditors in the capital structure, noted one dealer. One of the main issues is timing. According to one buysider, the dissident lending group prefers to spend more time hammering out a reorganization plan so that no bank debt value is left on the table. This method differs from the mentality that the quickest end is the best, which is the route the CIBC effort is taking. While the names of the lenders on board with the dissident group could not be determined, their number is significant enough for the other parties to take notice, he said. There will be a hearing this Thursday during which the company will seek approval of its disclosure statement, noted a Hayes spokeswoman. She declined to comment on the negotiations or the specific terms of the reorganization plan.
The market for the bank debt has remained relatively stable since Hayes filed its reorganization plan despite the negotiations. Traders said the paper has not changed hands recently, but the bank debt was quoted in the 82 1/2 to 83 1/2 context last week compared to 82 after the plan was filed in December. Under the company's current reorganization plan, bank debt holders would receive an undetermined portion of the company's new $425 million senior notes and common equity. More detailed distributions were not disclosed.Credit Suisse First Boston is the syndication agent and co-lead on the deal. Officials from CSFB declined to comment. Merrill Lynch and Dresdner Bank are co-documentation agents. Calls to the banks were not returned by press time. An attorney representing the auto parts company declined to comment. Calls to James Yost, Hayes cfo, were referred to a spokeswoman.