A U.S. Bankruptcy Court for the District of Delaware has accepted a reorganization plan for Hayes Lemmerz International to come out of bankruptcy
. The plan will hopefully improve the truck parts maker's balance sheet and reduce its leverage.

Through the new plan, the company's debt of about $720 million will be reduced to about $240 million upon emergence from Chapter 11.

The company has also reached settlements with its U.S. retirees to significantly reduce the burden of its retiree medical liabilities in the U.S. In addition, a new agreement with the Pension Benefit Guaranty Corporation should resolve the PBGC's claims with respect to the company's U.S. pension plan. The company's legacy retiree medical and pension liabilities in the U.S. were in excess of $250 million prior to filing and are expected to be less than $75 million after the reorganization plan goes through.

Before the company can put the plan into effect, it must obtain exit financing. The company is currently working with a number of potential lenders to structure exit financing of approximately $100 million. The company expects to finalize this financing and to emerge from Chapter 11 no later than December.

"We appreciate the efforts of our prepetition creditors in reaching agreements that enable us to significantly reduce our debt," said Curtis Clawson, chairman and of the company. "We also appreciate the cooperation of the PBGC and the representatives of our retirees in reaching agreements that will allow us to substantially reduce our pension and retiree medical obligations in a manner that is fair and equitable to our valued retirees. We believe that we will emerge from Chapter 11 as a leaner, stronger competitor well positioned to continue our leadership in the global wheel market."