HAYES LEMMERZ INTERNATIONAL

Case Highlights

• Represented nearly 600 retirees threatened with benefit termination
• Negotiated settlement that preserved substantial value of benefits received before the bankruptcy

Case Narrative

Founded in 1908, Hayes Lemmerz is the world’s largest producer of automotive and commercial highway steel and aluminum wheels. Citing the decline in auto sales in 2008, which directly affected the company, Hayes Lemmerz sought bankruptcy protection in mid-2009. DSI was retained by the Retiree Committee in order to help preserve benefits that the company had taken steps to terminate.   DSI analyzed the financial condition of the company and evaluated the various proposals and counter-proposals regarding benefit modification. Together, with Committee counsel, DSI negotiated a settlement agreement that, among other things, incorporated available federal stimulus funds and tax credits, allowing retirees and their spouses access to continued health coverage without a significant decrease from pre-bankruptcy levels, and requiring increased contributions from the company as its post-bankruptcy performance improves.