UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)
þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended April 30, 2007
or
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from to

(Mark One)


þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2009


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-50303

Hayes Lemmerz International, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization) 32-0072578 (IRS Employer Identification No.)


Delaware		32-0072578
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification No.)

15300 Centennial Drive		48168
Northville, Michigan		(Zip Code)
(Address of principal executive offices)

~~15300~~Registrant’s ~~Centennial~~telephone ~~Drive Northville~~number, ~~Michigan~~including ~~(Address~~area ~~of principal executive offices) 48168~~ code: (~~Zip Code~~734) 737-5000

Registrant’s telephone number, including area code:

(734) 737-5000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant ishas asubmitted ~~large~~electronically and posted on its ~~accelerated~~corporate ~~filer~~Web site, anif ~~accelerated filer~~any, orevery aInteractive ~~non-accelerated filer.~~Data ~~See~~File ~~definition~~required ofto ~~“accelerated~~be ~~filer~~submitted and ~~large~~posted ~~accelerated~~pursuant ~~filer”~~to in Rule ~~12b~~405 of Regulation S-2 T (§232.405 of ~~the~~this ~~Exchange~~chapter) ~~Act.~~during the preceding 12 months (~~Check~~or ~~one~~for such shorter period that the registrant was required to submit and post such files):. Yes o No o

~~Large~~ Indicate by check mark whether the registrant is a large accelerated filer ~~o Accelerated~~, an accelerated filer ~~þ Non~~, a non-accelerated filer, or a smaller reporting company. See the definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule o12b-2 of the Exchange Act. (Check one):


Large accelerated filer o	Accelerated filer þ	Non-accelerated filer o	Smaller reporting company o
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

~~APPLICABLE~~ As ~~ONLY~~of TOJune 18, ~~REGISTRANTS~~2009, ~~INVOLVED~~the INnumber ~~BANKRUPTCY PROCEEDINGS~~of ~~DURING~~shares ~~THE~~of ~~PRECEDING~~common ~~FIVE~~stock ~~YEARS:~~outstanding of Hayes Lemmerz International, Inc. was 101,819,597 shares.

~~Indicate~~HAYES byLEMMERZ ~~check mark whether the registrant has filed all documents and reports required to be filed by Sections 12~~INTERNATIONAL, ~~13,~~ ~~or 15(d) of the Securities Exchange~~INC. ~~Act~~QUARTERLY ofREPORT ~~1934~~ON ~~subsequent~~FORM ~~to the distribution of securities under a~~10-Q ~~plan~~TABLE ~~confirmed~~OF ~~by a~~CONTENTS ~~court. Yes þ No o~~

As of June 6, 2007, the number of shares of common stock outstanding of Hayes Lemmerz International, Inc., was 99,074,513 shares.


	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements		3
Consolidated Statements of Operations		3
Condensed Consolidated Balance Sheets		4
Consolidated Statements of Cash Flows		5
Consolidated Statements of Changes in Stockholders’ Equity		6
Notes to Consolidated Financial Statements		7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3. Quantitative and Qualitative Disclosures about Market Risk		33
Item 4. Controls and Procedures		33
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		34
Item 1A. Risk Factors		34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		42
Item 3. Defaults upon Senior Securities		42
Item 4. Submission of Matters to a Vote of Security Holders		42
Item 5. Other Information		42
Item 6. Exhibits		43
Signature		44
EX-31.1
EX-31.2
EX-32.1
EX-32.2

Unless otherwise indicated, references to “we,” “us,” or “our” mean Hayes Lemmerz International, Inc., a Delaware corporation, and its subsidiaries. References to fiscal year means ~~HAYES~~the 12-month period commencing on February 1st of that year and ending January ~~LEMMERZ~~31st ~~INTERNATIONAL~~of the following year (e.g., ~~INC~~fiscal 2009 means the period beginning February 1, 2009 and ending January 31, 2010). This report contains forward looking statements with respect to our financial condition, results of operations, and business. All statements other than statements of historical fact made in this Quarterly Report on Form 10-Q are forward-looking. Such forward-looking statements include, among others, those statements including the words “expect,” “anticipate,” “intend,” “believe,” and similar language. These forward looking statements involve certain risks and uncertainties. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others: (1) competitive pressure in our industry; (2) fluctuations in the price of steel, aluminum, and other raw material and our ability to maintain credit terms with our suppliers; (3) changes in general economic conditions; (4) our dependence on the automotive industry (which has historically been cyclical) and on a small number of major customers for the majority of our sales; (5) pricing pressure from automotive industry customers and the potential for re-sourcing of business to lower-cost providers; (6) changes in the financial markets or our debt ratings affecting our financial structure and our ability to borrow money or find alternative sources of additional money; (7) the uncertainties inherent in international operations and foreign currency fluctuations;(8) the outcome and consequences of our Chapter 11 bankruptcy filing; and (9) the risks described in this Quarterly Report on Form 10-Q. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We have no duty to update the forward looking statements in this Quarterly Report on Form 10-Q and we do not intend to provide such updates

2 ~~QUARTERLY REPORT ON FORM 10-Q TABLE OF CONTENTS~~

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements		2
	Consolidated Statements of Operations		2
	Condensed Consolidated Balance Sheets		3
	Consolidated Statements of Cash Flows		4
	Consolidated Statements of Changes in Stockholders’ Equity		5
	Notes to Consolidated Financial Statements		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		25
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		33
Item 4.	Controls and Procedures		34
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		34
Item 1A.	Risk Factors		34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		34
Item 3.	Defaults upon Senior Securities		34
Item 4.	Submission of Matters to a Vote of Security Holders		35
Item 5.	Other Information		35
Item 6.	Exhibits		35
Signature			36
Stock Purchase Agreement
Section 302 Certification of Curtis J. Clawson
Section 302 Certification of James A. Yost
Section 906 Certification of Curtis J. Clawson
Section 906 Certification of James A. Yost

Unless otherwise indicated, references to “we,” “us,” or “our” mean Hayes Lemmerz International, Inc., a Delaware corporation, and our subsidiaries. References to fiscal year means the 12-month period commencing on February 1st of that year and ending January 31st of the following year (e.g., fiscal 2007 means the period beginning February 1, 2007, and ending January 31, 2008). This report contains forward looking statements with respect to our financial condition, results of operations, and business. All statements other than statements of historical fact made in this Quarterly Report on Form 10-Q are forward-looking. Such forward-looking statements include, among others, those statements including the words “expect,” “anticipate,” “intend,” “believe,” and similar language. These forward looking statements involve certain risks and uncertainties. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others: (1) competitive pressure in our industry; (2) fluctuations in the price of steel, aluminum, and other raw materials; (3) changes in general economic conditions; (4) our dependence on the automotive industry (which has historically been cyclical) and on a small number of major customers for the majority of our sales; (5) pricing pressure from automotive industry customers and the potential for re-sourcing of business to lower-cost providers; (6) changes in the financial markets or our debt ratings affecting our financial structure and our cost of capital and borrowed money; (7) the uncertainties inherent in international operations and foreign currency fluctuations; and (8) our ability to divest non-core assets and businesses. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We have no duty to update the forward looking statements in this Quarterly Report on Form 10-Q and we do not intend to provide such updates.

Item 1. Financial Statements

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months				Three Months
			Three Months Ended April 30,
	Ended				Ended
			2009				2008
	April 30,				April 30,
			(Dollars in millions, except per
	2007				2006
			share amounts)
	(Dollars in millions, except per share amounts)
Net sales			$	258.2			$	573.8
Net sales	$	561.0			$	503.5
Cost of goods sold				258.6				510.1
Cost of goods sold		499.5				456.6
Gross profit				(0.4	)			63.7
Gross profit		61.5				46.9
Marketing, general, and administrative				35.4				39.3
Marketing, general, and administrative		38.6				34.6
Amortization of intangibles				2.0				2.8
Asset impairments and other restructuring charges	Note 7	~~2.4~~		4.2		~~3.5~~		3.3
Other expense, net		0.4				1.4
Other income, net				(1.0	)			(3.4	)
Earnings from operations		20.1				7.4
(Loss) earnings from operations				(41.0	)			21.7
Interest expense, net		~~18.3~~		22.0		~~16.9~~		13.3
Other non-operating expense		0.3				0.2
Other non-operating (income) expense				(2.3	)			1.7
Income (loss) from continuing operations before taxes and minority interest		1.5				(9.7	)
(Loss) earnings from operations before taxes				(60.7	)			6.7
Income tax expense		8.6				5.5
Income tax (benefit) expense	Note 9			(1.6	)			13.0
Loss from continuing operations before minority interest		(7.1	)			(15.2	)
Consolidated net loss				(59.1	)			(6.3	)
Minority interest		3.7				1.9
Less: Net (loss) income attributable to noncontrolling interest	Note 11			(0.6	)			6.5
Loss from continuing operations		(10.8	)			(17.1	)
Net loss attributable to Hayes Lemmerz International, Inc.			$	(58.5	)		$	(12.8	)
Discontinued operations:
Loss per common share data
Loss from operations, net of tax of $0.0 for both April 30, 2007 and 2006		(0.9	)			(0.5	)
Basic and diluted:
Loss on sale of business, net of tax of $0.0		(3.6	)			—
Net loss attributable to Hayes Lemmerz International, Inc.			$	(0.57	)		$	(0.13	)
Loss from discontinued operations		(4.5	)			(0.5	)
Weighted average shares outstanding (in thousands)	Note 8			101,820				101,071
Net loss	$	(15.3	)		$	(17.6	)
Loss per common share data
Basic and diluted:
Loss from continuing operations	$	(0.27	)		$	(0.45	)
Loss from discontinued operations		(0.11	)			(0.01	)
Net loss	$	(0.38	)		$	(0.46	)
Weighted average shares outstanding (in millions)		39.3				38.1

See accompanying notes to consolidated financial statements.

3 2

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES

~~CONDENSED~~ CONSOLIDATED BALANCE SHEETS

	~~April 30,~~		April 30,		~~January 31,~~		January 31,
	2007				2007
			2009				2009
	~~(Dollars in millions)~~		(Dollars in millions)
	~~(Unaudited)~~		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	~~64.7~~	$	56.7	$	~~38.4~~	$	107.5
Receivables		321.1				258.5
Receivables, net of allowance of $0.8 and $0.3 at April 30, 2009 and January 31, 2009, respectively				136.8				157.3
Other receivables		~~34.3~~		28.9		~~43.2~~		15.4
Inventories	Note 3	~~197.3~~		151.8		~~172.8~~		156.9
Assets held for sale	Note 4	~~4.4~~		8.6		~~51.8~~		8.1
Prepaid expenses and other current assets		15.9				15.9
Deferred tax assets	Note 9			2.9				3.2
Total current assets		637.7				580.6
Prepaid expenses				8.6				7.7
Property, plant, and equipment, net		695.4				680.7
Total current assets				394.3				456.1
Goodwill		221.3				210.0
Property, plant, and equipment, net of accumulated depreciation of $430.2 and $398.3 as of April 30, 2009 and January 31, 2009, respectively				496.4				499.2
Intangible assets, net		178.9				173.8
Customer relationships, net of amortization of $22.5 and $21.0 at April 30, 2009 and January 31, 2009, respectively				89.0				87.8
Other assets		35.3				46.1
Other intangible assets, net of amortization of $43.3 and $41.2 at April 30, 2009 and January 31, 2009, respectively				24.2				24.6
Total assets	$	1,768.6			$	1,691.2
Other assets				20.2				28.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total assets			$	1,024.1			$	1,096.2
Current liabilities:
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Bank borrowings and other notes	$	28.8			$	27.9
Current liabilities:
Current portion of long-term debt		6.4				6.7
Bank borrowings and other notes	Note 5		$	34.5			$	46.6
Accounts payable and accrued liabilities		447.9				384.4
Current portion of long-term debt	Note 5			635.3				622.1
Liabilities held for sale		0.6				19.9
Accounts payable				116.5				133.0
Total current liabilities		483.7				438.9
Accrued payroll and employee benefits				56.6				53.2
Long-term debt, net of current portion		663.3				659.4
Other accrued liabilities				66.4				66.3
Deferred tax liabilities		61.2				67.3
Total current liabilities				909.3				921.2
Pension and other long-term liabilities		374.7				366.5
Long-term debt, net of current portion	Note 5			1.6				1.4
Minority interest		55.3				57.3
Deferred tax liabilities	Note 9			43.6				46.7
Commitments and contingencies
Pension and other long-term liabilities	Note 6			350.1				354.0
Stockholders’ equity:
Total liabilities				1,304.6				1,323.3
Preferred stock, 1,000,000 shares authorized, none issued or outstanding at April 30, 2007 or January 31, 2007		—				—
Stockholders’ deficit:
Common stock, par value $0.01 per share:
Preferred stock, 1,000,000 shares authorized, none issued or outstanding at April 30, 2009 or January 31, 2009				—				—
100,000,000 shares authorized; 39,645,682 and 38,470,434 issued and outstanding at April 30, 2007 and January 31, 2007, respectively		0.4				0.4
Common stock, par value $0.01 per share:
Additional paid in capital		686.6				678.6
200,000,000 shares authorized; 101,819,597 issued and outstanding at April 30, 2009 and January 31, 2009				1.0				1.0
Accumulated deficit		(749.1	)			(733.6	)
Additional paid in capital				887.7				887.1
Accumulated other comprehensive income		192.5				156.4
Accumulated deficit				(1,360.7	)			(1,302.1	)
Total stockholders’ equity		130.4				101.8
Accumulated other comprehensive income				129.0				121.1
Total liabilities and stockholders’ equity	$	1,768.6			$	1,691.2
Total Hayes Lemmerz International, Inc. stockholders’ deficit				(343.0	)			(292.9	)
Noncontrolling interests	Note 11			62.5				65.8
Total stockholders’ deficit				(280.5	)			(227.1	)
Total liabilities and stockholders’ deficit			$	1,024.1			$	1,096.2

See accompanying notes to consolidated financial statements.

4 3

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months			Three Months
	Ended			Ended
	April 30,			April 30,
	2007			2006
	(Unaudited)
	(Dollars in millions)
Cash flows from operating activities:
Net loss	$	(15.3	)	$	(17.6	)
Adjustments to reconcile net loss from operations to net cash provided by (used for) operating activities:
Net loss from discontinued operations		4.5			0.5
Depreciation and amortization		30.0			31.2
Asset impairments		0.2			0.2
Minority interest		3.7			2.1
Equity compensation expense		0.6			(0.2	)
Loss on sale of assets and businesses		0.2			1.2
Amortization of deferred financing fees		1.4			1.1
Changes in operating assets and liabilities that increase (decrease) cash flows:
Receivables		(47.7	)		(15.6	)
Other receivables		8.9			21.0
Inventories		(18.0	)		(13.8	)
Prepaid expenses and other		0.5			4.0
Accounts payable and accrued liabilities		45.9			22.7
Cash provided by operating activities		14.9			36.8
Cash flows from investing activities:
Purchase of property, plant, equipment, and tooling		(16.6	)		(10.9	)
Proceeds from sale of assets		—			0.2
Capital contributed by minority shareholders		—			0.4
Cash used for investing activities		(16.6	)		(10.3	)
Cash flows from financing activities:
Changes in bank borrowings and credit facilities		(0.6	)		(0.6	)
Bank finance fees paid		—			(2.9	)
Borrowing (repayment) of long-term debt		8.4			(0.2	)
Dividends paid to minority shareholders		(5.5	)		(1.0	)
Cash provided (used for) by financing activities		2.3			(4.7	)
Cash flows of discontinued operations:
Net cash provided by operating activities		2.9			(11.3	)
Net cash provided by (used for) investing activities		26.0			(1.2	)
Net cash (used for) provided by financing activities		(5.2	)		(1.1	)
Net cash provided by discontinued operations		23.7			(13.6	)
Effect of exchange rate changes on cash and cash equivalents		2.0			1.9
Increase in cash and cash equivalents		26.3			10.1
Cash and cash equivalents at beginning of period		38.4			42.3
Cash and cash equivalents at end of period	$	64.7		$	52.4
Supplemental data:
Cash paid for interest	$	15.1		$	12.1
Cash paid for income taxes	$	3.3		$	3.4

(Unaudited)


	Three Months Ended April 30,
	2,009.0			2,008.0
	(Dollars in millions)
Cash flows from operating activities:
Net loss	$	(58.5	)	$	(12.8	)

Adjustments to reconcile net loss from operations to net cash provided by (used for) operating activities:
Depreciation and amortization		22.5			27.8
Amortization and write-off of deferred financing fees		9.5			0.6
Asset impairments		0.6			2.7
Interest rate swap adjustments		(3.5	)		—
Deferred income taxes		(4.7	)		(0.8	)
Noncontrolling interests		(0.6	)		6.5
Equity compensation expense		0.6			1.0
Loss (gain) on sale of assets		0.2			(0.1	)
Changes in operating assets and liabilities that increase (decrease) cash flows:
Receivables		26.0			(16.8	)
Other receivables		(13.5	)		0.6
Inventories		10.0			(15.2	)
Prepaid expenses and other		(1.5	)		(9.0	)
Accounts payable and accrued liabilities		(20.2	)		(16.3	)

Cash used for operating activities		(33.1	)		(31.8	)

Cash flows from investing activities:
Purchase of property, plant, equipment, and tooling		(2.5	)		(19.2	)
Proceeds from sale of assets		0.2			0.5

Cash used for investing activities		(2.3	)		(18.7	)

Cash flows from financing activities:
Changes in bank borrowings and credit facilities		(12.2	)		2.1
Proceeds from long-term debt		0.2			—
Repayment of long-term debt		(0.1	)		(0.1	)
Dividends paid to minority shareholders		(3.7	)		(7.3	)

Cash used for financing activities		(15.8	)		(5.3	)

Cash flows of discontinued operations:
Net cash used for operating activities		(0.7	)		—
Net cash used for investing activities		—			—
Net cash used for financing activities		—			—

Net cash used for discontinued operations		(0.7	)		—
Effect of exchange rate changes on cash and cash equivalents		1.1			2.4

Decrease in cash and cash equivalents		(50.8	)		(53.4	)
Cash and cash equivalents at beginning of period		107.5			160.2

Cash and cash equivalents at end of period	$	56.7		$	106.8


Supplemental data:
Cash paid for interest	$	12.7		$	9.4
Cash paid for income taxes	$	3.5		$	9.3

See accompanying notes to consolidated financial statements.

5 4

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)

												~~Accumulated~~						Accumulated
						~~Additional~~						~~Other~~Additional						Other
						Paid in			Accumulated			Comprehensive
						Comprehensive			Common			Paid in			Accumulated			Comprehensive			Noncontrolling
	Shares		~~Par Value~~Total			~~Capital~~Income			~~Deficit~~Stock			~~Income~~Capital			~~Total~~Deficit			Income			Interest
	(Dollars in millions, except share amounts)
Balance at January 31, 2007		38,470,434	$	0.4		$	678.6		$	(733.6	)	$	156.4		$	101.8
Balance at January 31, 2009		101,819,597	$	(227.1	)				$	1.0		$	887.1		$	(1,302.1	)	$	121.1		$	65.8
Preferred stock dividends accrued		—		—(0.1	)		—			~~(0.2~~—	)		—			(0.21	)		—			—
Comprehensive income:
Net loss		—		—(59.1	)	$	—(59.1	)		~~(15.3~~—	)		—			(1558.35	)		—			(0.6	)
Currency translation adjustment		—		—8.9			—8.9			—			~~38.9~~—			~~38.9~~—			7.9			1.0
Unrealized loss on derivatives		—		—			—			—			(2.8	)		(2.8	)
Dividend paid		—		(3.7	)		(3.7	)		—			—			—			—			(3.7	)
Total comprehensive income		—		—			—			—			—			20.8
Total comprehensive loss		—		(53.9	)	$	(53.9	)		—			—			—			—			—
Shares issued for options and vested RSUs		36,296		—			—			—			—			—
Equity compensation expense		—		0.6						—			0.6			—			—			—
Common stock issued to note holders		1,049,020		—			5.3			—			—			5.3
Balance at April 30, 2009		101,819,597	$	(280.5	)				$	1.0		$	887.7		$	(1,360.7	)	$	129.0		$	62.5
Shares of redeemable preferred stock of subsidiary converted into common stock		89,932		—			2.1			—			—			2.1
Balance at January 31, 2008		101,057,966	$	272.8					$	1.0		$	882.0		$	(928.7	)	$	248.0		$	70.5
Equity compensation expense		—		—			0.6			—			—			0.6
Preferred stock dividends accrued		—		(0.2	)					—			—			(0.2	)		—			—
Balance at April 30, 2007		39,645,682	$	0.4		$	686.6		$	(749.1	)	$	192.5		$	130.4
Comprehensive income:
Balance at January 31, 2006		37,991,269	$	0.4		$	675.9		$	(566.3	)	$	73.3		$	183.3
Net loss		—		(6.3	)	$	(6.3	)		—			—			(12.8	)		—			6.5
Comprehensive income:
Currency translation adjustment		—		8.3			8.3			—			—			—			5.6			2.7
Net loss		—		—			—			(17.6	)		—			(17.6	)
Dividend paid		—		(7.3	)		(7.3	)		—			—			—			—			(7.3	)
Currency translation adjustment		—		—			—			—			30.7			30.7
Pension measurement date adjustment		—		(1.8	)		(1.8	)		—			—			(1.2	)		(0.6	)		—
Unrealized loss on derivatives		—		—			—			—			(3.4	)		(3.4	)
Change in unrealized gain/(loss) on derivatives		—		3.0			3.0			—			—			—			3.0			—
Total comprehensive income		—		—			—			—			—			9.7
Total comprehensive loss		—		(4.1	)	$	(4.1	)		—			—			—			—			—
Shares issued for vested RSUs		~~168~~20,~~220~~687		—			—			—			—			—			—			—
Balance at April 30, 2006		38,159,489	$	0.4		$	675.9		$	(583.9	)	$	100.6		$	193.0
Equity compensation expense		—		1.0						—			1.0			—			—			—
Balance at April 30, 2008		101,078,653	$	269.5					$	1.0		$	883.0		$	(942.9	)	$	256.0		$	72.4

See accompanying notes to consolidated financial statements.

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended April 30, 2007 and 2006 (Unaudited) (Dollars in millions, unless otherwise stated)

Note 1. Description of Business

These financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended January 31, 2007 as filed with the Securities and Exchange Commission on April 9, 2007.

Description of Business

Unless otherwise indicated, references to “us,” “we,” or “our” mean Hayes Lemmerz International, Inc., a Delaware corporation, and its subsidiaries, and references to “fiscal year” mean our fiscal year commencing on February 1 of that year and ending on January 31 of the following year (e.g., “fiscal 2007” refers to the period beginning February 1, 2007 and ending January 31, 2008, “fiscal 2006” refers to the period beginning February 1, 2006 and ending January 31, 2007).

Originally founded in 1908, Hayes Lemmerz International, Inc. is a leading worldwide producer of aluminum and steel wheels for passenger cars and light trucks and of steel wheels for commercial trucks and trailers. We are also a leading supplier of automotive brake and powertrain components. We have global operations with 30 facilities, including business and sales offices and manufacturing facilities located in 14 countries around the world. We sell our products to every major North American, Japanese, and European manufacturer of passenger cars and light trucks and to commercial highway vehicle customers throughout the world.

Note 2. Basis of Presentation

Our unaudited interim consolidated financial statements do not include all of the disclosures required by U.S. generally accepted accounting principles (GAAP) for annual financial statements. In our opinion, all adjustments considered necessary for a fair presentation of the interim period results have been included. Operating results for the fiscal 2007 interim period presented are not necessarily indicative of the results that may be expected for the full fiscal year ending January 31, 2008.

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Considerable judgment is often involved in making these determinations; the use of different assumptions could result in significantly different results. We believe our assumptions and estimates are reasonable and appropriate; however, actual results could differ from those estimates.

Certain prior period amounts have been reclassified to conform to the current year presentation.

Note 3. Stock-Based Compensation

Our Long-Term Incentive Plan provides for the grant of incentive stock options (ISOs), stock options that do not qualify as ISOs, restricted shares of common stock, and restricted stock units (collectively, the awards). Any officer, director, or key employee of Hayes Lemmerz International, Inc. or any of its subsidiaries is eligible to be designated a participant in the Long-Term Incentive Plan.

On July 28, 2003 we granted 1,887,162 stock options and 1,258,107 restricted stock units to certain employees and officers, and 65,455 options and 43,637 restricted stock units to non-employee members of our Board of Directors. The weighted average exercise price of the stock options was $13.93 per share, which was equal to the fair value on the date of grant. One third of the restricted stock units granted to certain of our employees and officers vested on July 28, 2006 and the remaining two thirds are scheduled to vest on July 28, 2007. We have also granted options and restricted stock units with similar vesting terms to certain new employees at the time of hire. The stock

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Three months ended April — 30, 2009 and 2008 (~~Continued~~Unaudited) (Dollars in millions, unless otherwise stated)

~~options~~Note ~~and~~1. ~~restricted~~Description ~~stock units granted to the non-employee directors vested one-third on the date~~ of ~~the grant and~~Business ~~one-third on each of the first and second anniversaries of the grant.~~

On These ~~March 14,~~financial ~~2005~~statements weshould ~~granted~~be ~~additional~~read ~~restricted~~in ~~stock units~~conjunction towith ~~certain~~our ~~employees,~~Annual ~~349,500~~Report ofon ~~which~~Form ~~vested~~10-K for ~~50%~~the ~~in January~~fiscal ~~2006~~year ~~and~~ended ~~will~~January 31, ~~vest~~2009 ~~with~~as ~~respect~~filed towith the ~~remaining~~Securities ~~50%~~and ~~in January~~Exchange ~~2008,~~Commission ~~and 105~~on May 11,~~350~~ ~~of which vested 100% in July 2006~~2009.

OnDescription ~~September 17,~~of ~~2006 we issued 611,000 restricted shares~~Business to senior managers and directors in the Company and on December 15, 2006 we issued 310,500 restricted shares to other managers in the Company. The shares vest 50% on September 17, 2007 and 50% on September 17, 2008.

Unless otherwise indicated, references to “us,” “we,” or “our” mean Hayes Lemmerz ~~Stock~~International, ~~option~~Inc., ~~activity~~a ~~for~~Delaware corporation, and our subsidiaries, and references to “fiscal year” mean our fiscal year commencing on February 1 of that year and ending on January 31 of the following ~~three~~year ~~months~~(e.g., ~~ended~~“fiscal ~~April~~2009” refers to the period beginning February 301, ~~2007~~ 2009 and ~~April~~ending January 3031, ~~2006~~2010, ~~under~~“fiscal 2008” refers to the ~~Long-Term~~period ~~Incentive~~beginning ~~Plan is~~February 1, as2008 ~~follows:~~and ending January 31, 2009).

				Weighted
	Number of			Average
	Shares			Exercise Price
Outstanding at January 31, 2006		1,722,235		$	13.54
Granted		—			—
Exercised		—			—
Canceled		(32,888	)		13.87
Outstanding and exercisable at April 30, 2006		1,689,347		$	13.53
Outstanding at January 31, 2007		1,334,639		$	13.47
Granted		—			—
Exercised		(7,790	)		4.52
Canceled		(6,710	)		16.07
Outstanding and exercisable at April 30, 2007		1,320,139		$	13.51

Originally founded in 1908, Hayes Lemmerz International, Inc. is a leading worldwide producer of aluminum and steel wheels for passenger cars and light trucks and of steel wheels for commercial trucks and trailers. We are also a supplier of automotive powertrain components. We have global operations with 23 facilities, including business and sales offices and manufacturing facilities located in 12 countries around the world. We sell our products to every major North American, Japanese, and European manufacturer of passenger cars and light trucks and to commercial highway vehicle customers throughout the world.

A On ~~summary~~May 11, 2009, we and certain of our ~~restricted~~subsidiaries ~~stock~~(collectively, ~~activity~~the Debtors) filed voluntary petitions for reorganization under Chapter 11 of Title 11 of the ~~three~~United ~~months~~States Code ~~ended~~(Bankruptcy ~~April~~Code) in the United States Bankruptcy Court for the District of Delaware (Bankruptcy Court). The cases are being jointly administered under Case No. 3009-11655 (MFW). With the exception of Hayes Lemmerz Finance LLC—Luxembourg S.C.A. (Hayes Luxembourg), ~~2007~~a borrower under our secured credit facility and ~~April~~the issuer of our 8.25% Senior Notes due 2015 (Senior Notes), the Company’s subsidiaries and operations outside the United States were not included in the filing, are not debtors in the Chapter 3011 cases or any other proceeding outside the United States, ~~2006~~and isare asexpected to ~~follows:~~and will continue to operate in the ordinary course of business outside and unaffected by the Chapter 11 cases and process.

				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Nonvested at January 31, 2006		1,357,705		$	12.14
Granted		—			—
Exercised		(1,782	)		14.90
Forfeited		(130,919	)		11.86
Outstanding at April 30, 2006		1,225,004		$	12.16
Nonvested at January 31, 2007		1,676,999		$	7.03
Granted		—			—
Exercised		(28,506	)		14.09
Forfeited		(26,521	)		8.92
Outstanding at April 30, 2007		1,621,972		$	6.88

The filing of the Chapter 11 petitions constituted an event of default under certain of our debt obligations, and those debt obligations became automatically and immediately due and payable, subject to an automatic stay of any action to collect, assert, or recover a claim against the Debtors and the application of applicable bankruptcy law.

In connection with the Chapter 11 filing, we, HLI Operating Company, Inc. (HLI Opco), Hayes AsLuxembourg, the Lenders party thereto, Deutsche Bank AG New York Branch, as DIP Administrative Agent, Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Joint Syndication Agents for the Debtor in Possession (DIP) Facilities, and Deutsche Bank Securities Inc., as Documentation Agent for the DIP Facilities, entered into Amendment No. 2, dated as of ~~April~~May 12, 2009, and amendment No. 3 dated as of May 19, 2009, to our Second Amended and Restated Credit Agreement, dated as of May 30, 2007, ~~there~~as amended ~~was~~by $2Amendment No.8 ~~million~~1, dated as of ~~total unrecognized~~January 30, ~~compensation~~2009, ~~cost~~with ~~related~~the tolenders ~~restricted~~party ~~nonvested~~thereto (Credit ~~shares~~Agreement). ~~That~~Pursuant ~~cost~~to isthe ~~expected~~amended toCredit beAgreement ~~recognized~~(DIP ~~over~~Credit ~~a weighted~~Agreement) debtor-~~average~~in-possession loan ~~period~~tranches (DIP Loans) were added to the Credit Agreement, including up to $100 million of additional 1liquidity to provide operating funds to us and our subsidiaries during the restructuring.~~0 years.~~

The DIP Loans consist of a senior secured debtor-in-possession new money term loan facility (New Money DIP Loans) in an aggregate principal amount of up to $100 million and a senior secured debtor-in-possession roll-up loan facility (Roll-up Loans) in an aggregate principal amount of up to $100 million. The Roll-up Loans will be issued to the pre-petition lenders under the Credit Agreement who make New Money DIP Loans in exchange for the pre-petition loans such lenders hold under the Credit Agreement; the Roll-up Loans will be deemed issued to the lenders upon the occurrence of a triggering event in the future. The DIP Loans benefit from a super-priority claim and lien on the assets of the Borrowers pursuant to a Bankruptcy Court order.

Market following our filings under Chapter 11. We believe that our currently outstanding common stock will have no value and will ~~HAYES LEMMERZ~~be ~~INTERNATIONAL,~~cancelled ~~INC~~under any plan of reorganization we may propose under Chapter 11. ~~AND~~We ~~SUBSIDIARIES~~also believe that the holders of our Senior Notes are unlikely to receive more than a de minimis distribution on account of their interests in the Senior Notes and that such interests could be cancelled under any plan of reorganization the Company may propose under Chapter 11.

There can be no assurance, however, that we will be able to develop, propose, and implement a successful plan of reorganization. Should we be unable to develop, propose, and implement a ~~NOTES TO CONSOLIDATED~~successful ~~FINANCIAL~~plan of reorganization, we may be forced to discontinue operations and liquidate the ~~STATEMENTS — (Continued)~~Company.

WeNote follow the provisions of the Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) 123R, “Share-Based Payment,” which we adopted on February 1, 20062. ~~There~~Basis ~~was no material adjustment to our Consolidated Statements~~ of ~~Operations upon adoption.~~Presentation

~~Note~~ Our 4unaudited interim consolidated financial statements do not include all of the disclosures required by U.S. ~~Inventories~~generally accepted accounting principles (GAAP) for annual financial statements. In our opinion, all adjustments considered necessary for a fair presentation of the interim period results have been included. Operating results for the fiscal 2009 interim period presented are not necessarily indicative of the results that may be expected for the full fiscal year ending January 31, 2010.

The accompanying consolidated financial statements have been prepared on a going concern basis which contemplates continuity of operations, realization of assets, and payment of liabilities in the ordinary course of business and do not reflect adjustments that might result if we are unable to continue as a going concern.

Note 3. Inventories

The major classes of inventory were as follows (dollars in millions):

	April 30,		January 31,
	2007		2007
	2009		2009
Raw materials	$	47.69	$	3948.90
Work-in-process		5221.8		3818.57
Finished goods		6351.31		6460.02
Spare parts and supplies		3331.60		30.40
Total	$	~~197~~151.38	$	~~172~~156.89

Note 54. Assets Held for Sale

Assets held for sale consist of the following (dollars in millions):

	April 30,		January 31,
	2007		2007
	2009		2009
Suspension business	$	1.6	$	49.0
Gainesville, Georgia facility	$	5.2	$	5.3
Howell, Michigan building		2.8		2.8
Huntington, Indiana facility		1.7		1.7
Total	$	4.4	$	51.8
Ferndale, Michigan facility		1.1		1.1
Howell, Michigan facility		0.6		—
Total	$	8.6	$	8.1

~~The~~ We ~~balance~~have asa ofdefinitive ~~January 31,~~agreement ~~2007~~with ~~includes~~Punch Property International NV for the ~~remaining balance~~sale of our Gainesville, ~~Suspension~~Georgia ~~business~~facility. ~~(see~~Punch ~~Note 6, Discontinued~~Property ~~Operations~~International ~~for~~NV ~~additional~~has ~~detail)~~not ~~and~~completed the ~~Howell,~~purchase of ~~Michigan~~the ~~building,~~property ~~which~~as ~~was~~contemplated ~~written~~by ~~down~~the toagreement ~~fair~~and ~~value~~we ~~during fiscal~~have ~~2006~~commenced ~~due~~litigation toseeking ~~declining~~specific performance ~~real~~of ~~estate~~the ~~market~~agreement ~~conditions~~and ~~in the~~damages, ~~area;~~which weis ~~continue~~currently subject to ~~actively~~the ~~market~~automatic ~~the~~stay ~~Howell~~in ~~building~~our Chapter 11 proceeding.

Note 6. Discontinued Operations

In the beginning of fiscal 2007 we divested our suspension business operations in Bristol, Indiana and Montague, Michigan. We received consideration for the sale of approximately $26.2 million, which consisted of approximately $21.1 million in cash plus the assumption of approximately $5.1 million of debt under capital leases for equipment at the facilities. We recorded a loss on the sale of $3.6 million. In October 2006 we sold the outstanding shares of stock of our Southfield, Michigan iron suspension components machining plant. We received net cash proceeds of $16.6 million and recorded a loss on the sale of $2.4 million. These facilities made up most of our suspension components business (Suspension business) and was part of our Components segment. We divested these operations in order to streamline our business in North America, provide us with greater financial flexibility, and focus our global resources on core businesses.

The Suspension business was accounted for as a discontinued operation in accordance with FASB SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. Accordingly, the operating results were classified as discontinued operations and prior periods have been reclassified.

As of April 30, 2009, we reclassified our Howell, Michigan facility as held for sale as we anticipate the sale of the building to be complete within one year as per Statement of Financial ~~HAYES LEMMERZ~~Accounting ~~INTERNATIONAL~~Standard (SFAS) 144, ~~INC.~~“Accounting ~~AND~~for ~~SUBSIDIARIES~~the Impairment or Disposal of Long-Lived Assets” (SFAS 144).

~~NOTES TO CONSOLIDATED~~Note ~~FINANCIAL~~5. Bank Borrowings, Other Notes, and Long-Term Debt ~~STATEMENTS — (Continued)~~

Short term bank borrowings and other notes were $34.5 million as of April 30, 2009 with a ~~The~~weighted ~~balances~~average interest rate of ~~the~~4.7% ~~Suspension~~and ~~business~~$46.6 million ~~consisted~~as of ~~the~~January 31, 2009 with a weighted ~~following~~average ~~(dollars~~interest inrate ~~millions):~~of 5.4%. These consist primarily of short-term credit facilities at our foreign subsidiaries.

	April 30,		January 31,
	2007		2007
Cash and cash equivalents	$	0.1	$	0.1
Receivables		1.4		30.0
Inventories		—		17.5
Prepaid expenses and other assets		—		1.4
Property, plant, and equipment, net		0.1		—
Total assets held for sale	$	1.6	$	49.0
Accounts payable and accrued liabilities	$	0.6	$	15.7
Other long term liabilities		—		4.2
Total liabilities held for sale	$	0.6	$	19.9

Operating results for the Suspension business are as follows (dollars in millions):

	April 30,			April 30,
	2007			2006
Net sales	$	6.8		$	69.3
Loss before income tax expense	$	(4.5	)	$	(0.5	)
Income tax expense		—			—
Net loss	$	(4.5	)	$	(0.5	)

Note 7. Bank Borrowings, Other Notes, and Long-Term Debt

Bank borrowings and other notes of $28.8 million and $27.9 million at April 30, 2007 and January 31, 2007, respectively, consist primarily of short-term credit facilities of our foreign subsidiaries.

Long-term debt consists of the following (dollars in millions):

	April 30,		January 31,
	2007		2007
	2009		2009
Various foreign bank and government loans, weighted average interest rates of 5.4% and 5.4% at April 30, 2007 and January 31, 2007, respectively	$	3.4	$	3.4
Various foreign bank and government loans, weighted average interest rates of 3.5% and 3.9% at April 30, 2009 and January 31, 2009, respectively	$	2.5	$	2.3
Term Loan B maturing 2009, weighted average interest rate of 8.8% and 8.9% at April 30, 2007 and January 31, 2007, respectively		326.7		327.8
Term Loan, weighted average interest rate of 10.5% and 10.2% at April 30, 2009 and January 31, 2009, respectively		337.6		328.9
Term Loan C maturing 2010, weighted average interest rate of 11.4% at both April 30, 2007 and January 31, 2007		150.0		150.0
8.25% Senior Notes		171.8		167.3
101/2% Senior Notes due 2010, net of discount of $0.3 million and $0.4 million at April 30, 2007 and January 31, 2007, respectively		157.2		162.1
Revolving Credit Facility, weighted average interest rate of 8.5% at both April 30, 2009 and January 31, 2009		125.0		125.0
Revolving Credit Facility, weighted average interest rate of 11.0% at April 30, 2007		10.0		—
		636.9		623.5
Mortgage note payable maturing June 3, 2008		21.7		21.8
Less current portion of long-term debt		635.3		622.1
Capital lease obligations		0.7		1.0
Total long-term debt	$	1.6	$	1.4
		669.7		666.1
Less current portion of long-term debt		6.4		6.7
Long-term debt	$	663.3	$	659.4

Classification of Debt

In January 2009, we favorably modified the leverage ratio and interest coverage ratio covenants under our Pre-petition Credit Facilities for the fourth quarter of fiscal 2008 and for each quarter of fiscal 2009. Absent the amendment, we would have been in default of our covenants as of January 31, 2009. In addition, due to the continuing deterioration in the global economy and the automotive industry in particular, it will be increasingly difficult for us to achieve continued compliance in subsequent periods without repaying borrowings under the Revolving Credit Facility, absent a waiver or a further amendment from our lenders. In accordance with Emerging Issues Task Force 86-30, “Classification of Obligations When a Violation Is Waived by the Creditor,” we reclassified our debt to current as of January 31, 2009.

Euro Denominated Debt

The balance of our Term Loan, which is described more fully below, was approximately €255.4 million at both April 30, 2009 and January 31, 2009. The balance of our Senior Notes was €130 million at both April 30, 2009 and January 31, 2009. The US dollar balance of the Term Loan increased from $328.9 million as of January 31, 2009 to $337.6 million as of April 30, 2009, which was due to the fluctuation of foreign currency exchange rates. The US dollar balance of the 8.25% Senior Notes increased from $167.3 million as of January 31, 2009 to $171.8 million as of April 30, 2009 due to the fluctuation of foreign currency exchange rates. As a result of our Chapter 11 filings, we are in default under both our Term Loan, which is scheduled to mature in 2014, and our Senior Notes, which are scheduled to mature in 2015, subject to an automatic stay of any action to collect, assert, or recover a claim against us under applicable bankruptcy law.

Senior Notes

Our Senior Notes consist of €130 million 8.25% of senior unsecured notes issued by Hayes Lemmerz Finance LLC — Luxembourg S.C.A (Hayes Luxembourg), an indirect, wholly-owned subsidiary of the Company. The Senior Notes are scheduled to mature in 2015 but, as a result of our Chapter 11 filings, are currently in default, subject to an automatic stay of any action to collect, assert, or recover a claim against us under applicable bankruptcy law. The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by us and substantially all of our direct and indirect domestic subsidiaries and certain of our indirect foreign subsidiaries.

HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Credit Facility

On June 3, 2003 HLI ~~Operating Company, Inc., a wholly-owned subsidiary of the Company (HLI~~ Opco), entered into a $550 million senior secured credit facility (~~Credit~~Original Credit Facility), which initially consisted of a $450 million six-year amortizing term loan ~~(Term Loan B)~~ and a five-year $100 million revolving credit facility ~~(Revolving Credit Facility)~~.

On April 11, 2005 we amended and restated the Original Credit Facility to establish a new second lien $150 million term ~~loan~~ ~~(Term Loan C)~~loan, from which 50% of the net proceeds were to be used for general corporate purposes, with the remainder of the net proceeds used to repay a portion of the ~~Term~~existing ~~Loan B.~~term ~~The Term Loan C principal balance of $150 million was due on June 3, 2010~~loan.

~~The~~ On May 30, 2007 we amended and restated the Original Credit Facility ~~contained~~to ~~covenants~~establish ~~restricting~~three ~~our ability~~new ~~and~~senior ~~the~~secured ~~ability~~credit facilities in an amount of ~~our~~approximately ~~subsidiaries~~$495 million to(Pre-petition ~~issue~~Credit Facilities). ~~more~~The ~~debt,~~Pre-petition ~~pay~~Credit Facilities consist of a term loan facility of €260 million ~~dividends,~~borrowed ~~repurchase~~by ~~stock,~~Hayes ~~make~~Luxembourg ~~investments~~(Term Loan), ~~merge~~a orrevolving credit facility of $125 million available to ~~consolidate,~~HLI ~~transfer~~Opco ~~assets~~and Hayes Luxembourg (Revolving Credit Facility), and ~~enter~~a ~~into~~synthetic ~~transactions~~letter ~~with~~of credit ~~affiliates.~~facility ~~These~~of ~~restrictive~~€15 million ~~covenants~~available ~~are~~to ~~customary~~both borrowers. The interest rate for ~~such facilities~~the Term Loan and ~~subject~~synthetic toletter ~~certain~~of ~~exceptions~~credit facility is the EURIBOR rate plus 6.0% per annum with a EURIBOR floor of 3.5%. The interest rate for the Revolving Credit Facility ~~also~~is ~~contained~~the ~~certain~~Citibank ~~financial~~base ~~covenants~~rate ~~regarding~~plus ~~a maximum~~5.25% ~~total~~per ~~leverage~~annum. ~~ratio~~Prior ~~and~~to athe ~~minimum~~January 2009 amendment to the Pre-petition Credit Facilities, the interest ~~coverage~~rate for the Term Loan and synthetic letter of ~~ratio~~credit facility was EURIBOR plus 2.75% ~~HLI~~per ~~Opco’s~~annum ~~obligations~~and ~~under~~the interest rate for the ~~Credit~~Revolving ~~Facility~~Credit ~~were~~Facility ~~guaranteed~~was bythe usCitibank ~~and~~base ~~substantially~~rate ~~all~~plus 2.0%. As a result of our ~~material~~failure to comply with certain ~~direct~~financial covenants under the Pre-petition Credit Facilities, the interest rates above were increased by 2.0% per annum from and ~~indirect~~after ~~domestic~~the ~~subsidiaries~~date of default.

As of April 30, ~~2007~~2009, ~~there~~the ~~was~~obligations ~~$10 million~~of inHLI Opco and Hayes Luxembourg under the Pre-petition ~~outstanding~~Credit ~~borrowings~~Facilities were guaranteed by us and ~~approximately~~substantially ~~$20.9 million~~all inof our direct and indirect domestic ~~letters~~subsidiaries. In addition, the obligations of ~~credit~~Hayes ~~issued~~Luxembourg under the ~~Revolving~~Pre-petition Credit Facilities ~~Facility.~~were Asguaranteed, subject to certain exceptions, by certain of our foreign subsidiaries. As of ~~January~~April 3130, ~~2007~~2009, ~~there~~the obligations of HLI Opco and Hayes Luxembourg under the Pre-petition Credit Facilities and the guarantors’ obligations under their respective guarantees of the Pre-petition Credit Facilities were, nosubject ~~outstanding~~to ~~borrowings~~certain exceptions, secured by a first priority perfected pledge of substantially all capital stock owned by the borrowers and ~~approximately~~the ~~$20.3 million~~guarantors in(but not ~~letters~~more than 65% of ~~credit~~the ~~issued~~capital stock of Hayes Luxembourg or any foreign subsidiary can secure HLI ~~under~~Opco’s obligations) and substantially all of the ~~Revolving~~other ~~Credit~~assets ~~Facility~~owned by the borrowers and the guarantors. The ~~amount~~guarantees ~~available~~and security for the Pre-petition Credit Facilities are subordinated to ~~borrow~~priming ~~under~~liens granted by the ~~Revolving~~Bankruptcy ~~Credit~~Court ~~Facility~~in atconnection ~~April 30,~~with the DIP Financing and other liens ~~2007~~granted as security for the DIP Loans. All foreign guarantees and ~~January 31,~~collateral ~~2007~~are ~~was~~subject ~~approximately~~to ~~$69.1 million~~applicable restrictions on cross-stream and ~~$79.7 million~~upstream guarantees and other legal restrictions, including ~~respectively~~financial assistance rules, thin capitalization rules, and corporate benefit rules.

As of April 30, 2009, the Pre-petition Credit Facilities contained negative covenants restricting our ability and the ability of our subsidiaries to, among other actions, declare ~~Senior~~dividends or repay or repurchase capital stock, cancel, prepay, redeem or repurchase debt, incur ~~Notes~~liens and engage in sale-leaseback transactions, make loans and investments, incur indebtedness, amend or otherwise alter certain debt documents, engage in mergers, acquisitions and asset sales, engage in transactions with affiliates, and alter their respective businesses. The financial covenants under the Pre-petition Credit Facilities include covenants regarding a maximum total leverage ratio, a minimum interest coverage ratio and a maximum capital expenditures amount. These covenants have been supplemented by the covenants in the DIP Credit Agreement.

As of April 30, ~~2007~~2009 ~~HLI~~there ~~Opco~~were ~~had~~$125 million of borrowings and no letters of credit issued under the Revolving Credit Facility, and $~~157~~15.57 million ~~aggregate~~ ~~principal~~in ~~amount~~letters of credit issued under the ~~101/2% Senior Notes~~synthetic ~~that~~letter ~~mature~~of oncredit ~~June~~facility. As of January 1531, ~~2010~~2009 we had borrowed $125 million under the Revolving Credit Facility and had issued $19.1 million ~~Interest~~in onletters of credit under the ~~Senior~~synthetic ~~Notes~~letter ~~accrues~~of atcredit afacility. ~~rate~~HLI Opco is restricted from repaying current borrowings of $125 million ~~101/2%~~under the Revolving Credit Facility unless we have achieved EBITDA of at least $200 ~~per~~million for the ~~annum~~twelve ~~and~~months preceding the date of the repayment. There were no funds available to borrow under the Revolving Credit Facility at April 30 or January 31, 2009. There was ~~payable~~no ~~semi-annually~~amount inavailable ~~arrears~~for the onissuance ~~June~~of 15letters of credit under the synthetic letter of credit at April 30, 2009 and $0.3 ~~December~~million available at January 1531, 2009.

~~The~~Covenant ~~Senior Notes are senior, unsecured obligations of HLI Opco~~Compliance and are effectively subordinated in right of payment to all existing and future secured debt of HLI Opco to the extent of the value of the assets securing that debt, equal in right of payment with all existing and future senior debt of HLI Opco, and senior in right of payment to all subordinated debt of HLI Opco.

~~Except~~ As asof ~~set~~April 30, ~~forth below~~2009, we were in violation the ~~Senior~~leverage ~~Notes~~ratio ~~were~~and ~~not~~interest ~~redeemable~~coverage ratio atcovenants ~~the~~of ~~option~~our ofPre-petition ~~HLI~~Credit ~~Opco~~Facilities. ~~prior~~The failure to ~~June 15,~~meet ~~2007.~~these ~~Starting~~covenants and our onsubsequent ~~that~~Chapter 11 ~~date,~~filings ~~HLI~~were ~~Opco~~events ~~could~~of ~~redeem~~default ~~all~~under orthe ~~any~~Pre-petition ~~portion~~Credit ofFacilities ~~the~~and also resulted in a default under the Senior Notes,. atAs ~~once~~a orresult, ~~over~~those ~~time,~~long-term ~~upon~~debt ~~the~~obligations became ~~terms~~automatically and ~~conditions~~ ~~set~~immediately ~~forth~~due inand ~~the~~payable, ~~senior~~subject ~~note~~to ~~indenture~~an ~~agreement (Indenture).~~automatic Atstay of any ~~time~~action ~~prior~~ to ~~June 15~~ collect, ~~2007~~assert, ~~HLI~~or ~~Opco could~~recover ~~redeem~~a ~~all~~claim oragainst ~~any~~the ~~portion~~Debtors ofand the ~~Senior~~application ~~Notes,~~of atapplicable bankruptcy ~~once~~law. ~~or over~~In ~~time~~accordance with Emerging Issues Task Force 86-30, at“Classification of Obligations When a ~~redemption~~Violation ~~price~~Is ~~equal~~Waived by the Creditor,” we reclassified our debt to ~~100%~~current as of January 31, ~~the~~2009 ~~principal amount~~due ofto the ~~Senior~~anticipation ~~Notes~~of tothe belikely ~~redeemed,~~covenant ~~plus~~violation aas ~~specified “make-whole”~~of ~~premium~~April 30, 2009.

The Indenture provided for certain restrictions regarding additional debt, dividends and other distributions, additional stock of subsidiaries, certain investments, liens, transactions with affiliates, mergers, consolidations, and the transfer and sales of assets. The Indenture also provided that a holder of the Senior Notes could, under certain circumstances, have the right to require that we repurchase such holder’s Senior Notes upon a change of control of the Company. The Senior Notes were unconditionally guaranteed as to the payment of principal, premium, if any, and interest, jointly and severally on a senior, unsecured basis by us and substantially all of our domestic subsidiaries.

During the first quarter of fiscal 2007 common stock was issued in exchange for $5.0 million of the Senior Notes.

~~HAYES LEMMERZ~~Note ~~INTERNATIONAL, INC~~6. ~~AND~~Pension ~~SUBSIDIARIES~~Plans and Postretirement Benefits Other Than Pensions

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NewFinancing

On May 30, 2007 we paid off both the existing Credit Facility and Senior Notes with the proceeds of an equity rights offering and new debt financing. The new financing significantly reduces our total debt, lowers the interest rate, and extends debt maturities (see Note 16, Subsequent Events, for additional detail).

Note 8. Pension Plans and Postretirement Benefits Other Than Pensions

We sponsor several defined benefit pension plans (Pension Benefits) and health care and life insurance benefits (Other Benefits) for certain employees around the world. We fund the Pension Benefits based upon the funding requirements of United States and international laws and regulations in advance of benefit payments and the Other Benefits as benefits are provided to the employees.

The fiscal ~~2007~~2009 and fiscal ~~2006~~2008 amounts shown below present the Pension Benefits and Other Benefits expense for the three months ended April 30, ~~2007~~2009 and ~~2006~~2008 (dollars in millions):

	Pension Benefits - US						Other Benefits - US						Pension Benefits - International
	Three Months Ended April 30,
	US Plans												International Plans
	2009			2008			2009			2008			2009			2008
	Pension												Pension
Service cost	$	0.3		$	0.3		$	—		$	—		$	0.1		$	0.2
	Benefits						Other Benefits						Benefits
Interest cost		2.8			2.6			2.5			2.3			1.7			1.9
	2007			2006			2007			2006			2007			2006
Expected return on plan assets		(1.9	)		(3.3	)		—			—			(0.1	)		(0.3	)
Service cost	$	0.3		$	0.2		$	—		$	—		$	0.2		$	0.3
Amortization of net loss (gain)		0.7			(0.2	)		(1.0	)		(0.4	)		—			—
Interest cost		2.6			2.7			2.4			2.7			1.6			1.4
Amortization of prior service cost		—			—			—			—			0.1			—
Expected return on plan assets		(3.1	)		(2.6	)		0.1			—			(0.2	)		(0.1	)
Net periodic benefit cost	$	1.9		$	(0.6	)	$	1.5		$	1.9		$	1.8		$	1.8
Amortization of net loss		—			—			(0.1	)		(0.1	)		—			—
Special termination benefit recognized		—			0.1			—			—			—			—
Net periodic benefit cost	$	(0.2	)	$	0.4		$	2.4		$	2.6		$	1.6		$	1.6

We contributed $0.2 million to our U.S. Pension Benefits plan and $3.1 million to our ~~United~~U.S. Other ~~States~~Benefits ~~pension plans~~plan during the first three months of fiscal ~~2007~~2009. ~~and~~We ~~expect~~are unable to provide ~~contribute~~expected ancontributions ~~additional~~to $9our U.~~5 million~~S. ~~during~~Pension ~~the~~Benefit ~~remainder of~~and ~~fiscal 2007~~U. ~~We contributed $3~~S.~~8 million~~ toOther ~~our~~Benefits ~~United States~~plans ~~postretirement~~for ~~benefit plan during~~ the ~~first three months~~remainder of fiscal ~~2007~~2009 ~~and~~as ~~expect~~these toare ~~contribute~~subject anto ~~additional $11.1 million~~review ~~during~~and ~~the~~approval ~~remainder~~ of ~~fiscal~~the ~~2007~~Bankruptcy Court. We ~~contributed~~ contributed $12.74 million to our international ~~pension~~Pension Benefits plan during the first three months of fiscal 2009 ~~2007~~ and expect to contribute an additional $79.23 million during the remainder of fiscal ~~2007~~2009.

On Effective ~~August~~January 1731, ~~2006~~2007, ~~the~~we adopted SFAS 158, “Employers’ Accounting for Defined Benefit Pension ~~Protection~~and ~~Act~~Other Postretirement Plans” (SFAS 158), which amends SFAS 87, “Employers’ Accounting for Pensions,” SFAS 88, “Employers’ Accounting for Settlements and Curtailments of ~~2006~~Defined ~~was~~Benefit ~~signed~~Pension ~~into~~Plan ~~law.~~and Wefor ~~have~~Termination ~~not~~Benefits,” ~~yet~~SFAS ~~incorporated~~106, ~~this~~“Employers’ ~~legislation~~Accounting for Postretirement ~~into~~Benefits Other Than Pensions,” and SFAS 132 (revised 2003), “Employers’ Disclosures about Pensions and Other Postretirement Benefits.” SFAS 158 requires an employer to recognize the ~~calculation~~over funded or under funded status of defined benefit ~~obligations.~~pension and postretirement plans (other than a multi employer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. This ~~legislation~~Statement also requires an employer to measure the funded status of a plan as of the date of ~~will~~its beyear-end ~~effective~~statement ~~for~~of ~~our~~financial position, with limited exceptions. During the first quarter of fiscal ~~year~~2008, we recorded $1.2 million as a decrease of beginning ~~February~~retained earnings and $0.6 1,million ~~2008~~as a decrease of accumulated other comprehensive income due to the change in measurement date.

Note 9. Asset Impairments and Other Restructuring Charges

Asset impairment losses and other restructuring charges for the three months ended April 30, 2007 and 2006 were as follows (dollars in millions):

	Three Months Ended April 30, 2007
	Automotive
	Wheels		Components		Other		Total
Facility closure costs	$	2.1	$	—	$	—	$	2.1
Impairment of facility, machinery, and equipment		0.2		—		—		0.2
Severance and other restructuring costs		—		—		0.1		0.1
Total	$	2.3	$	—	$	0.1	$	2.4

~~HAYES LEMMERZ~~Note ~~INTERNATIONAL, INC~~7. ~~AND~~Asset ~~SUBSIDIARIES~~Impairments and Other Restructuring Charges

~~NOTES~~ Asset impairment losses and other restructuring charges for the three months ended April TO30, ~~CONSOLIDATED~~2009 ~~FINANCIAL STATEMENTS —~~ and 2008 were as follows (~~Continued~~dollars in millions):

	Three Months Ended April 30, 2006
	Three Months Ended April 30, 2009
	Automotive
	Wheels		~~Components~~Other		~~Other~~Total		~~Total~~
Facility closure costs	$	0.46	$	—0.1	$	—0.7	$	~~0.4~~
Impairment of facility, machinery, and equipment		0.26		—		—0.6		~~0.2~~
Severance and other restructuring costs		12.54		0.85		02.69		~~2.9~~
Total	$	23.16	$	0.86	$	04.62	$	~~3.5~~

Asset Impairment Losses and Other Restructuring Charges for the Three Months Ended April 30, 2007


	Three Months Ended April 30, 2008
	Automotive
	Wheels		Other		Total
Facility closure costs	$	0.3	$	0.1	$	0.4
Impairment of facility, machinery, and equipment		2.7		—		2.7
Severance and other restructuring costs		0.1		0.1		0.2

Total	$	3.1	$	0.2	$	3.3

~~During~~Asset ~~the~~Impairment ~~first~~Losses ~~quarter of fiscal 2007, we recorded facility closure, employee restructuring charges,~~ and ~~asset~~Other ~~impairments of~~Restructuring ~~$2.4 million.~~Charges Infor the ~~Automotive~~Three ~~Wheels~~Months ~~segment~~Ended ~~we recorded expense of $2.3~~April ~~million~~30, ~~principally related to~~2009 the closure of our Huntington, Indiana aluminum wheel facility as well as machinery and equipment impairments recorded at our at our Brazil aluminum wheel facility. The Other segment expense of $0.1 million is primarily related to severance expense at our corporate offices.

~~Asset Impairment~~ During ~~Losses~~the ~~and~~first ~~Other~~quarter ~~Restructuring~~of ~~Charges~~fiscal ~~for~~2009, ~~the~~we ~~Three Months~~recorded ~~Ended~~facility ~~April 30~~closure, ~~2006~~employee restructuring charges, and asset impairments of $4.2 million.

~~During~~ In the ~~first~~Automotive ~~quarter~~Wheels ofsegment ~~fiscal 2006~~ we recorded ~~facility closure,~~expense ~~employee restructuring, and asset impairment expenses~~ of $3.56 million. InFacility ~~the~~closure ~~Automotive Wheels segment we~~costs ~~recorded expenses~~ of $20.16 million, ~~primarily~~were related to ~~the~~ongoing costs for our idle aluminum wheel facilities in Howell, ~~closure~~Michigan, which was reclassified as an asset held for sale as of ~~our~~April 30, ~~Huntington~~2009, and Huntington, Indiana, as well as our aluminum wheel facility asin Gainesville, Georgia, which is subject to a ~~well~~definitive asagreement ~~employee~~of ~~restructuring~~the ~~expenses~~facility atto ~~our~~for ~~facilities~~the insale with Punch Property International NV for the ~~Spain,~~sale ~~Italy~~(see Note 4, ~~and~~Asset ~~South~~Held ~~Africa.~~for ~~The~~Sale ~~Components~~for ~~segment~~additional ~~recorded a~~information). Asset impairments of $0.8 6 million ~~charge~~were ~~mainly~~related ~~due~~ to ~~severance~~our ~~expense~~idle ~~for the~~aluminum ~~Ferndale~~wheel facility in Howell, Michigan, ~~technical~~based ~~center,~~on ~~which~~an ~~was~~offer received ~~closed~~from an interested buyer with whom we are in ~~fiscal~~ ~~2006~~negotiations for the sale of the facility. Severance ~~The~~and ~~Other~~other ~~segment~~restructuring ~~expense~~costs of $02.64 million ~~is primarily~~were related to ~~severance~~headcount ~~expense~~reductions at our ~~corporate offices~~facilities in Manresa, Spain; Chihuahua, Mexico; Königswinter, Germany; Manisa, Turkey; and Alrode, South Africa facilities in order to align headcount with the lower sales volumes.

Expense of $0.1 million in the Other segment was related to facility closure costs for our Ferndale, Michigan technical center, which was closed in fiscal 2007. Expense of $0.5 million in ~~Facility Exit~~Other ~~Costs~~segment was related to severance and ~~Severance~~other ~~Accruals~~restructuring costs for our powertrain facility in Nuevo Laredo, Mexico.

~~The~~Asset ~~following~~Impairment ~~table~~Losses ~~describes the activity in the balance sheet accounts affected by severance~~ and ~~other~~Other ~~facility~~Restructuring ~~exit~~Charges ~~costs during~~for the ~~three~~Three ~~months~~Months ~~ended~~Ended April 30, ~~2007 (dollars in~~2008 ~~millions):~~

			Accrual of		Cash
			Severance and		Payments and
			Other		Effects of
	January 31,		Restructuring		Foreign			April 30,
	2007 Accrual		Charges		Currency			2007 Accrual
Facility exit costs	$	0.2	$	2.1	$	(2.2	)	$	0.1
Severance		0.8		0.1		(0.6	)		0.3
Total	$	1.0	$	2.2	$	(2.8	)	$	0.4

During the first quarter of fiscal 2008, we recorded facility closure, employee restructuring charges, and asset impairments of $3.3 million.

~~Note~~ In 10the Automotive Wheels segment we recorded expense of $3.1 million. ~~Weighted~~Facility ~~Average~~closure ~~Shares~~costs of ~~Outstanding~~$0.3 million were related to ongoing costs for our aluminum wheel facilities in Howell, Michigan and Huntington, Indiana. Asset impairments of $2.7 million were related to our aluminum wheel facilities in Howell, Michigan and Chihuahua, Mexico, which were impaired to the fair value in accordance with SFAS 144, and Hoboken, Belgium, which was sold during the second quarter of fiscal 2008. Severance and other restructuring costs of $0.1 million were related to our aluminum wheel facility in Dello, Italy.

~~Basic~~ Expense ~~loss per share is calculated by dividing net loss by the weighted average number~~ of ~~common shares outstanding~~$0.2 million ~~Diluted loss~~in ~~per share is computed by dividing net loss by~~ the ~~diluted weighted~~Other ~~average~~segment ~~shares~~consists ~~outstanding~~of $0.1 million ~~Diluted~~for ~~weighted~~facility ~~average~~closure ~~shares~~cost ~~assume~~and ~~the~~severance ~~exercise~~ of ~~stock~~$0.1 million ~~options~~for ~~and~~our ~~warrants~~Ferndale, ~~so long~~Michigan astechnical ~~they~~center, ~~are~~which ~~not~~was ~~anti-dilutive~~closed in fiscal 2007.

~~HAYES LEMMERZ~~Facility ~~INTERNATIONAL,~~Exit ~~INC.~~Costs ~~AND~~and ~~SUBSIDIARIES~~Severance Accruals

~~NOTES TO CONSOLIDATED~~ The ~~FINANCIAL~~following tables shows the activity in the balance sheet accounts affected by severance ~~STATEMENTS —~~ and other facility exit costs during the periods indicated (~~Continued~~dollars in millions):

Shares outstanding for the three months ended April 30, 2007 and 2006 were as follows (thousands of shares):


	Three Months Ended April 30, 2009
	January 31,				Cash Payments and			April 30,
	2009				Effects of Foreign			2009
	Accrual		Expense		Currency			Accrual
Facility closure costs	$	0.2	$	0.7	$	(0.7	)	$	0.2
Severance and other restructuring costs		4.0		2.9		(3.2	)		3.7

Total	$	4.2	$	3.6	$	(3.9	)	$	3.9

	Three Months
	Three Months Ended April 30, 2008
	Ended April 30,
	January 31,				Cash Payments and			April 30,
	2007		2006
	2008				Effects of Foreign			2008
Basic weighted average shares outstanding		39,269		38,122
	Accrual		Expense		Currency			Accrual
Dilutive effect of options and warrants		—		—
Facility closure costs	$	—	$	0.4	$	(0.4	)	$	—
Diluted weighted average shares outstanding		39,269		38,122
Severance and other restructuring costs		0.2		0.2		(0.2	)		0.2
Total	$	0.2	$	0.6	$	(0.6	)	$	0.2

~~For~~Note ~~the~~8. ~~three~~Weighted ~~months~~Average ~~ended~~Shares ~~April 30, 2007 and 2006 all~~Outstanding ~~options, warrants, and unvested restricted stock units were excluded from the calculation of diluted loss per share as the effect was anti-dilutive due to the net loss in those periods.~~

~~Note~~ Shares ~~11.~~outstanding ~~Taxes~~for onthe ~~Income~~three months ended April 30, 2009 and 2008 were as follows (thousands of shares):

Income tax expense allocated to continuing operations for the three months ended April 30, 2007 and 2006 were as follows (dollars in millions):


	Three Months Ended April 30,
	2009		2008
Basic weighted average shares outstanding		101,820		101,071
Dilutive effect of unvested restricted stock and options		—		—

Diluted weighted average shares outstanding		101,820		101,071

	Three Months Ended April 30,
	2007					2006
	US			Foreign		US			Foreign
Pre-tax income (loss)	$	(24.1	)	$	25.6	$	(24.1	)	$	14.4
Income tax expense		0.2			8.4		0.3			5.2

For the three months ended April 30, 2009 and 2008 all options and unvested restricted stock units were excluded from the calculation of diluted loss per share on the Consolidated Statements of Operations as the effect was anti-dilutive due to the net loss in those periods.

~~Income~~ On ~~tax~~June 8, ~~expense~~2009 ~~for~~we were delisted from the ~~three~~NASDAQ ~~months~~Stock ~~ended~~Market ~~April~~following the filing of our Chapter ~~30,~~11 proceeding. We believe that our currently outstanding common stock will have no value ~~2007~~and ~~was~~will ~~primarily~~be ~~the~~cancelled ~~result~~under any plan of ~~tax~~reorganization ~~expense~~we inmay ~~foreign~~propose under Chapter 11. The ~~jurisdictions~~opportunity for any recovery by holders of our common stock under such reorganization plan is unlikely and ~~various~~our ~~states~~shares are likely to be cancelled without any compensation pursuant to such plan.

WeNote ~~have determined that a valuation allowance is required against all net deferred tax assets in the United States and certain deferred tax assets in foreign jurisdictions~~9. ~~As such,~~Taxes ~~there~~on ~~is no federal income tax benefit recorded against~~Income ~~current losses incurred in the United States.~~

~~Effective February 1, 2007, we adopted FASB Interpretation No. 48, “Accounting for Uncertainty in~~ Income ~~Taxes,~~ ~~an interpretation of FASB Statement No. 109” (FIN 48). FIN 48 provides guidance on financial statement recognition and measurement of~~ tax ~~positions~~expense ~~taken,~~allocated ~~or expected~~ to becontinuing ~~taken,~~operations infor ~~tax~~the ~~returns. The~~three ~~initial~~months ~~adoption~~ended ~~of FIN~~April ~~48 did not have a material impact on our financial statements. As of February 1~~30, ~~2007,~~ ~~the~~2009 ~~amount~~and of2008 ~~unrecognized~~were ~~tax~~as ~~benefits~~follows ~~was~~(dollars ~~$19.4 million, including~~in ~~$0.4 million of related accrued interest.~~millions):

The amount of unrecognized tax benefits may increase or decrease in the future for various reasons including adding amounts for current tax year positions, expiration of open income tax returns due to the statutes of limitation, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity, and the addition or elimination of uncertain tax positions. Our policy is to report interest related to unrecognized tax benefits in interest expense and penalties, if any, related to unrecognized tax benefits in income tax expense in our Consolidated Statements of Operations.


	Three Months Ended April 30,
	2009						2008
	US			Foreign			US			Foreign
Pre-tax income (loss)	$	(34.6	)	$	(26.1	)	$	(18.1	)	$	24.8
Income tax expense (benefit)		0.8			(2.4	)		0.3			12.7

We The ~~have~~tax ~~open~~benefit ~~tax~~in ~~years~~the ~~from~~current quarter primarily ~~2000~~relates to ~~2006~~international ~~with~~tax ~~various~~losses ~~significant~~generated, ~~taxing~~which ~~jurisdictions~~we ~~including~~expect ~~the~~to ~~United~~utilize ~~States, Germany,~~in ~~Italy,~~the ~~Brazil~~future, ~~and~~partially ~~Czech~~offset ~~Republic.~~by ~~These~~withholding ~~open~~tax ~~years contain~~expense ~~matters that could be subject to differing~~in ~~interpretations~~the ofUS. ~~applicable~~Income tax ~~laws~~expense ~~and~~for ~~regulations~~the asthree ~~they relate~~months toended ~~the amount~~April 30, ~~timing~~2008 orwas ~~inclusion~~primarily ~~of revenue and expenses or~~ the ~~sustainability~~result of ~~income tax credits for a given~~ ~~audit cycle. We have recorded a~~ tax ~~benefit~~expense ~~only~~in ~~for~~foreign ~~those positions~~jurisdictions ~~that~~and ~~meet~~various ~~the more-likely-than-not standard~~states.

There are currently no US federal or state income tax audits in process. The last US federal income tax audit closed was for the fiscal year ended January 31, 2004. A German income tax audit was initiated on July 6, 2006 for fiscal years 2000 through 2004 .

We have determined that a valuation allowance is required against all net deferred tax assets ~~HAYES LEMMERZ~~in ~~INTERNATIONAL,~~the ~~INC~~United States and certain deferred tax assets in foreign jurisdictions. ~~AND~~As ~~SUBSIDIARIES~~such, there is no federal income tax benefit recorded against current losses incurred in the United States.

The amount of unrecognized tax benefits was $4.9 million and $4.8 million at April 30, 2009 ~~NOTES~~and January TO31, 2009 respectively, without related accrued interest and penalties. The amount of ~~CONSOLIDATED~~unrecognized ~~FINANCIAL~~tax benefits may increase or decrease in the future for various reasons including ~~STATEMENTS — (Continued)~~adding amounts for current tax year positions, expiration of open income tax returns due to the statutes of limitation, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity, and the addition or elimination of uncertain tax positions. Our policy is to report interest related to unrecognized tax benefits in interest expense and penalties, if any, related to unrecognized tax benefits in income tax expense in our Consolidated Statements of Operations.

~~Note~~ We 12have open tax years from primarily 2001 to 2008 with various significant taxing jurisdictions including the United States, Germany, Italy, Brazil, Turkey, Spain and Czech Republic. ~~Segment~~These ~~Reporting~~open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, timing or inclusion of revenue and expenses or the sustainability of income tax credits for a given audit cycle. We have recorded a tax benefit only for those positions that meet the more-likely-than-not standard.

WeNote ~~are organized based primarily on markets served and products produced~~10. ~~Under~~Segment ~~this organizational structure, our operating~~Reporting segments have been aggregated into three reportable segments: Automotive Wheels, Components, and Other. The Automotive Wheels segment includes results from our operations that primarily design and manufacture fabricated steel and cast aluminum wheels for original equipment manufacturers in the global passenger car, light vehicle, and heavy duty truck markets. The Components segment includes results from our operations that primarily design and manufacture suspension, brake, and powertrain components for original equipment manufacturers in the global passenger car and light vehicle markets. The Other segment includes financial results related to the corporate office and the elimination of certain intercompany activities.

We are organized based primarily on markets served and products produced. Under this organizational structure, our operating segments have been aggregated into two reportable segments: Automotive Wheels and Other. The Automotive Wheels segment includes results from our operations that primarily design and manufacture fabricated steel and cast aluminum wheels for original equipment manufacturers in the global passenger car, light vehicle, and commercial vehicle markets. The Other segment includes results from our operations that primarily design and manufacture powertrain components for the passenger car and light vehicle markets as well as financial results related to the corporate office and the elimination of certain intercompany activities.

The following tables present revenues and other financial information by business segment (dollars in millions):

	Three Months Ended April 30, 2007
	Three Months Ended April 30, 2009
	Automotive
	Wheels			~~Components~~Other			~~Other~~Total			~~Total~~
Net sales	$	~~466~~247.81		$	9411.21		$	—258.2		$	~~561.0~~
Asset impairments and other restructuring charges		2.3.6			—0.6			04.12			~~2.4~~
Earnings (loss) from operations		24.5			0.4			(4.8	)		20.1
Loss from operations		(30.2	)		(10.8	)		(41.0	)

	Three Months Ended April 30, 2006
	Three Months Ended April 30, 2008
	Automotive
	Wheels		~~Components~~Other			~~Other~~Total			~~Total~~
Net sales	$	~~403~~562.80	$	9911.78		$	—573.8		$	~~503.5~~
Asset impairments and other restructuring charges		23.1		0.82			03.63			~~3.5~~
Earnings (loss) from operations		13.5		(1.2	)		(4.9	)		7.4
Earnings from operations		16.8		4.9			21.7

As of April 30, 2007

As of April 30, 2009

Automotive

Wheels

~~Components~~Other

~~Other~~Total

~~Total~~

Total assets

1,~~462~~156.51

~~151~~(132.90

)

~~154~~1,024.21

~~1,768.6~~

As of January 31, 2007

As of January 31, 2009

Automotive

Wheels

~~Components~~Other

~~Other~~Total

~~Total~~

Total assets

1,~~336~~171.68

~~192~~(75.06

)

~~162~~1,096.62

~~1,691.2~~

~~Note~~ As ~~13.~~we ~~Minority~~do ~~Interest~~not inprepare ~~Equity~~consolidated financial statements by country, providing a breakdown of net ~~Consolidated~~assets ~~Subsidiaries~~by geographic areas in which we operate is impracticable.

The consolidated financial statements include the accounts of our majority-owned subsidiaries in which we have control. The balance sheet and results of operations of controlled subsidiaries where ownership is greater than 50 percent, but less than 100 percent, are included in the consolidated financial statements and are offset by a related minority interest expense and liability recorded for the minority interest ownership.

Minority interest includes common shares in consolidated subsidiaries where our ownership is less than 100 percent and preferred stock issued by HLI Opco. The preferred stock is redeemable by HLI Opco at any time after June 3, 2013, and may be exchanged at the option of the holders at any time for shares of Hayes Lemmerz International, Inc. common stock. The holders of the preferred stock are entitled to cash dividends of 8% of the liquidation preference per annum when, as, and if declared by the Board of Directors of HLI Opco. Dividends accrue without interest from the date of issuance until declared and paid or until the shares are redeemed by HLI Opco or exchanged by the holders thereof.

~~HAYES LEMMERZ~~Note ~~INTERNATIONAL, INC~~11. ~~AND~~Noncontrolling ~~SUBSIDIARIES~~Interest in Consolidated Financial Statements

In December 2007, the FASB issued SFAS 160, “Noncontrolling Interests in Consolidated Financial Statements” (SFAS 160). SFAS 160 became effective for fiscal years beginning on or after ~~NOTES~~December TO15, 2008. We adopted SFAS 160 on a prospective basis on February 1, 2009, except for the ~~CONSOLIDATED~~presentation ~~FINANCIAL~~and disclosure requirements which were applied retrospectively for all periods ~~STATEMENTS~~presented. The adoption of SFAS 160 had an impact on the presentation and disclosure of noncontrolling interests in the consolidated financial statements. The former “minority interest” is now called “noncontrolling interest” in the consolidated financial statements. The presentation of the mezzanine section of the minority interest is now part of the equity on the consolidated balance sheet. Additionally, the adoption of SFAS 160 had the effect of reclassifying income (loss) —attributable to the noncontrolling interest in the consolidated statements of operations from minority interest to separate line items and net income (loss) be adjusted to include net income (~~Continued~~loss) attributable to both noncontrolling interest and controlling interest.

The consolidated financial statements include the accounts of our majority-owned subsidiaries in which we have control. The balance sheet and results of ~~minority~~operations ~~interest~~of controlled subsidiaries where ownership is ~~summarized~~greater asthan ~~follows:~~50 percent are included in the consolidated financial statements and are offset by a related adjustment to equity and interest expense for the noncontrolling interest ownership.

	April 30,		January 31,
	2007		2007
Minority interest in consolidated affiliates	$	44.6	$	44.8
Minority interest in preferred stock		10.7		12.5
Total minority interest	$	55.3	$	57.3

Noncontrolling interest includes common shares in consolidated subsidiaries where our ownership is less than 100 percent and preferred stock issued by HLI Opco. The preferred stock is redeemable by HLI Opco at any time after June 3, 2013, and may be exchanged at the option of the holders at any time for shares of our common stock. The holders of the preferred stock are entitled to cash dividends of 8% of the liquidation preference per annum when, as, and if declared by the Board of Directors of HLI Opco. Dividends accrue without interest from the date of issuance until declared and paid or until the shares are redeemed by HLI Opco or exchanged by the holders thereof.

~~Note~~ The ~~14.~~balance ~~Accounting~~of ~~Errors~~noncontrolling interest is summarized as follows (dollars in millions):

In May 2007 we discovered accounting errors that would have impacted our reported results for prior periods. The two most significant of these errors related to the amount of depreciation we recognized for US GAAP purposes in several of our foreign subsidiaries and to recognition of an employee liability for supplemental retirement payments in Belgium under FASB SFAS 87, “Employers’ Accounting for Pensions.” Since the impact to financial statements for fiscal years 2003, 2004, 2005, and 2006 was not material, we recorded additional expense of approximately $0.4 million in the first quarter of fiscal 2007. The depreciation expense, if properly recorded, would have decreased net income by $0.3 million in fiscal 2003 and $1.1 million in fiscal 2004, and increased net income by $1.4 million in fiscal 2005 and $1.1 million in fiscal 2006. The pension expense would have decreased net income by $1.5 million in fiscal 2006.


	April 30,		January 31,
	2009		2009
Noncontrolling interest in consolidated affiliates	$	50.8	$	54.3
Noncontrolling interest in preferred stock		11.7		11.5

Total noncontrolling interest	$	62.5	$	65.8

Note 1512. ~~Condensed~~Fair ~~Consolidating~~Value ~~Financial Statements~~Measurement

On February 1, 2008 we adopted SFAS 157 for fair value measurements of financial assets and ~~The~~financial ~~following~~liabilities ~~condensed~~that ~~consolidating~~are recognized or disclosed at fair value in the financial statements on ~~present~~a recurring basis. In February 2008, the FASB issued FASB Staff Position 157-2, “Effective Date of FASB Statement No. 157” (FSP 157-2). This FSP delays the effective date of SFAS 157 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial ~~information~~statements ~~required~~on ~~with~~a ~~respect~~recurring basis (at least annually). The effective date for nonfinancial assets and nonfinancial liabilities has been delayed by one year to ~~those~~fiscal years ~~entities~~beginning ~~that~~after ~~guarantee~~November 15, ~~certain~~2008 ofand ~~our~~interim ~~debt~~periods within those fiscal years. We adopted FSP 157-2 on February 1, 2009.

~~The~~ SFAS ~~condensed~~157 ~~consolidating~~defines ~~financial~~fair ~~statements~~value ~~are~~as ~~presented based~~the onprice ~~the~~that ~~equity~~would ~~method~~be ofreceived ~~accounting.~~to ~~Under~~sell ~~this~~an ~~method,~~asset ~~the~~or paid to ~~investments~~transfer a liability in ~~subsidiaries~~an ~~are~~orderly ~~recorded~~transaction between market participants at ~~cost~~the ~~and~~measurement ~~adjusted~~date. SFAS 157 also establishes a framework for ~~our~~measuring ~~share~~fair ofvalue ~~the~~and ~~subsidiaries’~~expands ~~cumulative~~disclosures ~~results~~about offair ~~operations,~~value ~~capital~~measurements. ~~contributions,~~As ~~distributions,~~a ~~and~~basis ~~other~~for considering market participant assumptions in fair value ~~equity~~measurements, ~~changes.~~SFAS ~~The~~157 ~~principal~~establishes ~~elimination~~a ~~entries~~fair-value ~~eliminate~~hierarchy that prioritizes inputs for valuation ~~investments~~techniques inused ~~subsidiaries~~to ~~and~~measure ~~intercompany~~fair ~~balances~~value ~~and~~as follows: ~~transactions.~~

~~Guarantor and~~Level ~~Nonguarantor~~1: ~~Financial~~Observable ~~Statements~~inputs, such as quoted market prices in active markets, for identical assets or liabilities that are accessible at the measurement date.

AsLevel of2: ~~April 30~~Inputs, ~~2007 Hayes Lemmerz International, Inc. (Hayes), HLI Parent Company, Inc. (Parent), and substantially all of our domestic subsidiaries (~~other than ~~HLI~~quoted asmarket ~~the~~prices ~~issuer of~~included ~~the~~in ~~Senior~~Level ~~Notes and borrower under the Term Loan B and Term Loan C) (collectively~~1, excluding Hayes, the Guarantor Subsidiaries) fully and unconditionally guaranteed, on a joint and several basis, the Senior Notes, Term Loan B, and Term Loan C. At April 30, 2007 none of our foreign subsidiaries have guaranteed the Senior Notes, Term Loan B, or Term Loan C, nor have two of our domestic subsidiaries owned by our foreign subsidiaries or subsidiaries that are ~~special~~observable ~~purpose~~either ~~entities~~directly ~~formed~~or ~~for~~indirectly ~~domestic accounts receivable securitization programs (collectively, the Nonguarantor Subsidiaries). In lieu of providing separate unaudited financial statements~~ for ~~each of~~ the ~~Guarantors,~~asset weor ~~have included the unaudited supplemental guarantor condensed consolidating financial statements~~liability. We do not believe that separate financial statements for each of the Guarantors are material to investors. Therefore, separate financial statements and other disclosures concerning the Guarantors are not presented.

Level 3: Unobservable inputs that reflect the entity’s own assumptions about the exit price of the asset or liability. Unobservable inputs may be used if there is little or no market data for the asset or liability at the measurement date.

Assets and liabilities measured at fair value are based on one or more of the following three ~~HAYES LEMMERZ~~valuation ~~INTERNATIONAL,~~techniques ~~INC.~~noted ~~AND~~in ~~SUBSIDIARIES~~SFAS 157:

~~NOTES TO CONSOLIDATED~~Market ~~FINANCIAL STATEMENTS —~~ approach: Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income approach: Uses valuation techniques to convert future amounts to a single present value amount based on current market expectations. Cost approach: The amount that would be required to replace the service capacity of the asset (~~Continued~~replacement costs) .

~~CONDENSED CONSOLIDATING~~ Our ~~STATEMENTS~~financial OFinstruments ~~OPERATIONS~~include cash, marketable securities, trade receivables, other ~~For~~receivables, trade payables, and short-term debt. Due to the ~~Three~~short-term ~~Months~~nature ~~Ended~~of ~~April 30~~these instruments, ~~2007~~the book value approximates fair value.

							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries		Eliminations			Total
	(Dollars in millions)
	(Unaudited)
Net sales	$	—		$	—		$	145.5		$	421.0	$	(5.5	)	$	561.0
Cost of goods sold		—			2.9			136.2			365.9		(5.5	)		499.5
Gross profit (loss)		—			(2.9	)		9.3			55.1		—			61.5
Marketing, general, and administrative		—			0.4			14.7			23.5		—			38.6
Equity in (earnings) losses of subsidiaries and joint ventures		15.3			(1.1	)		0.6			—		(14.8	)		—
Asset impairments and other restructuring charges		—			—			2.2			0.2		—			2.4
Other (income) expense, net		—			(0.4	)		(1.5	)		2.3		—			0.4
Earnings (loss) from operations		(15.3	)		(1.8	)		(6.7	)		29.1		14.8			20.1
Interest expense, net		—			13.3			—			5.0		—			18.3
Other non-operating expense		—			0.3			—			—		—			0.3
Earnings (loss) from continuing operations before taxes on income and minority interest		(15.3	)		(15.4	)		(6.7	)		24.1		14.8			1.5
Income tax expense		—			(0.1	)		0.9			7.8		—			8.6
Earnings (loss) from continuing operations before minority interest		(15.3	)		(15.3	)		(7.6	)		16.3		14.8			(7.1	)
Minority interest		—			—			—			3.7		—			3.7
Earnings (loss) from continuing operations		(15.3	)		(15.3	)		(7.6	)		12.6		14.8			(10.8	)
Income (loss) from discontinued operations		—			—			(5.8	)		1.3		—			(4.5	)
Net income (loss)	$	(15.3	)	$	(15.3	)	$	(13.4	)	$	13.9	$	14.8		$	(15.3	)

We generally manage our interest rate risks associated with interest rate movements through the use of a combination of variable and fixed rate debt. From time to time, we have entered into interest rate swap arrangements to further hedge against interest rate fluctuations (cash flow hedge). As of April 30, 2009 and January 31, 2009, we had four interest rate swaps, two with Deutsche Bank and two with UBS Bank.

The following table provides a summary of the interest rate swaps as of April 30 and January 31, 2009 (in millions):


		Notional
	Hedge Type	Amount	Maturity
Deutsche Bank Swap	Cash flow hedge	€ 40.0	8/28/2012
Deutsche Bank Swap	Cash flow hedge	€ 30.0	8/28/2012
UBS Swap	Cash flow hedge	€ 25.0	9/30/2012
UBS Swap	Cash flow hedge	€ 25.0	9/30/2012

The fair value related to the interest rate swaps as shown in the following table are included in other accrued liabilities on the Consolidated Balance Sheets for the years indicated (dollars in millions):


	April 30, 2009					January 31, 2009
	Carrying				Fair Value	Carrying				Fair Value
	Value		Fair Value		Hierarchy	Value		Fair Value		Hierarchy
Deutsche Bank Swap, €40 million	$	1.0	$	1.0	Level 3	$	1.9	$	1.9	Level 2
Deutsche Bank Swap, €30 million		0.7		0.7	Level 3		1.4		1.4	Level 2
UBS Swap, €25 million		0.2		0.2	Level 3		1.2		1.2	Level 2
UBS Swap, €25 million		0.2		0.2	Level 3		1.1		1.1	Level 2

Total swaps	$	2.1	$	2.1		$	5.6	$	5.6

The fair values of the financial instruments shown in the above table as of April 30 and January 31, 2009 represent management’s best estimates of the amounts that would be paid to transfer those liabilities in an orderly transaction between market participants at those dates. Those fair value measurements maximize the use of unobservable inputs as of April 30, 2009 and observable inputs as of January 31, 2009. The inputs used in calculating the fair value of the interest rate swaps as of April 30, 2009 were based on ongoing restructuring negotiations with our creditors. For the three months ended April 30, 2009, we recorded income of 3.5 million due to the fair value adjustment, which is included in interest expense, net in our consolidated statements of operations.

Note 13. Derivative Instruments and Hedging Activities

In March 2008 the FASB issued SFAS 161, “Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133” (SFAS 161). This statement is intended to improve transparency in financial reporting by requiring enhanced disclosures of an entity’s derivative instruments and hedging activities and their effects on the entity’s financial position, financial performance, and cash flows. SFAS 161 applies to all derivative instruments within the scope of SFAS 133, “Accounting for Derivative Instruments and Hedging Activities” (SFAS 133) as well as related hedged items, bifurcated derivatives, and nonderivative instruments that are designated and qualify as hedging instruments. Entities with instruments subject to SFAS 161 must provide more robust qualitative disclosures and expanded quantitative disclosures. SFAS 161 is effective prospectively for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application permitted. The adoption of this statement did not have a material effect on the Company’s financial statements.

We generally manage our risk associated with interest rate movements through the use of a ~~HAYES LEMMERZ~~combination ~~INTERNATIONAL,~~of ~~INC~~variable and fixed rate debt. ~~AND~~We ~~SUBSIDIARIES~~have from time to time entered into interest rate swap arrangements to further hedge against interest rate fluctuations.

We are exposed to fluctuations in interest rates on our variable rate debt. During the second quarter of fiscal 2007, we entered into interest rate swaps with total notional amount of €70 ~~NOTES~~million. The swaps became effective on August TO28, 2007 and were scheduled to mature on August 28, ~~CONSOLIDATED~~2012. ~~FINANCIAL~~During the third quarter of fiscal 2007, we entered into interest rate swaps with total ~~STATEMENTS~~notional amount of €50 —million. The swaps became effective on September ~~(Continued)~~30, 2007 and were scheduled to mature on September 30, 2012. Due to the amendment to our credit agreement in January 2009, our swaps were not effective during the quarter ended April 30, 2009 and income of $3.5 million was recognized in the consolidated statements of operations as interest expense, net. We recorded a gain of $3.0 million to other comprehensive income for the quarter ended April 30, 2008 as the swaps were effective at that time. In May 2009, these interest rate swap agreements were terminated due to our bankruptcy filing on May 11, 2009, which was in violation of the swap agreements.

~~CONDENSED CONSOLIDATING~~ See ~~STATEMENTS~~Note OF12, ~~OPERATIONS For~~Fair Value Measurement for the ~~Three~~fair ~~Months~~value ~~Ended~~calculations ~~April 30,~~of ~~2006~~our interest rate swaps.

							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries		Eliminations			Total
	(Dollars in millions)
	(Unaudited)
Net sales	$	—		$	—		$	157.9		$	354.8	$	(9.2	)	$	503.5
Cost of goods sold		—			4.2			149.8			311.8		(9.2	)		456.6
Gross profit (loss)		—			(4.2	)		8.1			43.0		—			46.9
Marketing, general, and administrative		—			1.3			13.1			20.2					34.6
Equity in (earnings) losses of subsidiaries and joint ventures		17.6			(0.3	)		(1.5	)		—		(15.8	)		—
Asset impairments and other restructuring charges		—			1.4			1.6			0.5		—			3.5
Other (income) expense, net		—			(0.1	)		—			1.5		—			1.4
Earnings (loss) from operations		(17.6	)		(6.5	)		(5.1	)		20.8		15.8			7.4
Interest (income) expense, net		—			10.9			—			6.0		—			16.9
Other non-operating expense		—			0.1			—			0.1		—			0.2
Earnings (loss) from continuing operations before taxes on income and minority interest		(17.6	)		(17.5	)		(5.1	)		14.7		15.8			(9.7	)
Income tax expense		—			0.1			0.2			5.2		—			5.5
Earnings (loss) from continuing operations before minority interest		(17.6	)		(17.6	)		(5.3	)		9.5		15.8			(15.2	)
Minority interest		—			—			—			1.9		—			1.9
Income (loss) from continuing operations		(17.6	)		(17.6	)		(5.3	)		7.6		15.8			(17.1	)
Income from discontinued operations, net of tax		—			—			(0.5	)		—		—			(0.5	)
Net income (loss)	$	(17.6	)	$	(17.6	)	$	(5.8	)	$	7.6	$	15.8		$	(17.6	)

Note 14. New Accounting Pronouncements

In June 2009 the FASB issued SFAS 167, “Amendments to FASB Interpretation No. 46(R)” (SFAS 167). SFAS 167 eliminates Interpretation 46(R)’s exceptions to consolidating qualifying special-purpose entities, contains new criteria for determining the primary beneficiary, and increases the frequency of required reassessments to determine whether a company is the primary beneficiary of a variable interest entity. SFAS 167 also contains a new requirement that any term, transaction, or arrangement that does not have a substantive effect on an entity’s status as a variable interest entity, a company’s power over a variable interest entity, or a company’s obligation to absorb losses or its right to receive benefits of an entity must be disregarded in applying Interpretation 46(R)’s provisions. The elimination of the qualifying special-purpose entity concept and its consolidation exceptions means more entities will be subject to consolidation assessments and reassessments. SFAS 167 will be effective for our fiscal year beginning February 1, 2010. We are currently assessing the potential impacts, if any, on our consolidated financial statements.

In June 2009 the FASB issued SFAS 166, “Accounting for Transfers of financial Assets — an amendment of FASB Statement No. 140” (SFAS 166). SFAS 166 eliminates the concept of a qualifying special-purpose entity, creates more stringent conditions for reporting a transfer of a portion of a financial asset as a sale, clarifies other sale-accounting criteria, and changes the initial measurement of a transferor’s interest in transferred financial assets. SFAS 166 will be effective for our fiscal year beginning February 1, 2010. We are currently assessing the potential impacts, if any, on our consolidated financial statements.

In May 2009 the FASB issued SFAS 165, “Subsequent Events” (SFAS 165). SFAS 165 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. It should not result in significant changes in the subsequent events that an entity reports, either through recognition or disclosure in its financial statements. SFAS 165 introduces the concept of financial statements being available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date, that is, whether that date represents the date the financial statements were issued or were available to be issued. This disclosure should alert all users of financial statements that an entity has not evaluated subsequent events after that date in the set of financial statements being presented. SFAS 165 will apply to both interim financial statements and annual financial statements after June 15, 2009. We do not anticipate that the adoption of SFAS 165 will have a significant impact on our financial condition or results of operations.

In December 2008 the FASB issued FASB Staff Position SFAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets” (FSP SFAS 132(R)-1). FSP SFAS 132(R)-1 provides enhanced disclosures with regard to assets held by postretirement plans, including how investment allocations are made, the major categories of plan assets, the inputs and valuation techniques used to measure the fair value of plan assets, the effect of fair value measurements using Level 3 inputs, as defined in SFAS 157, “Fair Value Measurements” (SFAS 157) and an understanding of significant concentrations of risk within plan assets. FSP SFAS 132(R)-1 is effective for fiscal years ending after December 15, 2009, with early application permitted. We are currently assessing the potential impacts, if any, on our consolidated financial statements.

~~HAYES LEMMERZ~~Note ~~INTERNATIONAL, INC~~15. ~~AND~~Condensed ~~SUBSIDIARIES~~Consolidating Financial Statements

The following condensed consolidating financial statements present the financial information ~~NOTES TO CONSOLIDATED~~required ~~FINANCIAL~~with respect to those entities that guarantee certain of our debt. ~~STATEMENTS — (Continued)~~

The condensed consolidating financial statements are presented based on the equity method of ~~CONDENSED CONSOLIDATING~~accounting. ~~BALANCE~~Under ~~SHEETS~~this method, the investments in subsidiaries are recorded at cost and adjusted Asfor our share of ~~April 30~~the subsidiaries’ cumulative results of operations, ~~2007~~capital contributions, distributions, and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.

							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
	(Unaudited)
Cash and cash equivalents	$	—		$	4.4		$	1.0		$	59.3		$	—		$	64.7
Receivables		—			(71.3	)		77.0			315.4			—			321.1
Other receivables		—			34.3			—			—			—			34.3
Inventories		—			1.2			51.2			144.9			—			197.3
Prepaid expenses and other		—			6.5			4.4			9.4			—			20.3
Total current assets		—			(24.9	)		133.6			529.0			—			637.7
Property, plant, and equipment, net		—			29.2			121.2			545.0			—			695.4
Goodwill and other assets		130.9			752.5			(240.4	)		391.1			(598.6	)		435.5
Total assets	$	130.9		$	756.8		$	14.4		$	1,465.1		$	(598.6	)	$	1,768.6
Bank borrowings and other notes	$	—		$	—		$	—		$	28.8		$	—		$	28.8
Current portion of long-term debt		—			4.6			0.7			1.1			—			6.4
Accounts payable and accrued liabilities		—			52.4			54.8			341.3			—			448.5
Total current liabilities		—			57.0			55.5			371.2			—			483.7
Long-term debt, net of current portion		—			660.9			—			2.4			—			663.3
Pension and other long-term liabilities		—			197.4			0.8			237.7			—			435.9
Minority interest		—			10.7			—			44.6			—			55.3
Parent loans		0.5			(183.5	)		(16.7	)		204.8			(5.1	)		—
Common stock		0.4			—			—			—			—			0.4
Additional paid-in capital		686.6			696.3			389.0			569.1			(1,654.4	)		686.6
Retained earnings (accumulated deficit)		(749.1	)		(731.9	)		(419.4	)		(101.9	)		1,253.2			(749.1	)
Accumulated other comprehensive income (loss)		192.5			49.9			5.2			137.2			(192.3	)		192.5
Total stockholders’ equity		130.4			14.3			(25.2	)		604.4			(593.5	)		130.4
Total liabilities and stockholders’ equity	$	130.9		$	756.8		$	14.4		$	1,465.1		$	(598.6	)	$	1,768.6

Guarantor and Nonguarantor Financial Statements

As of April 30, 2009 Hayes Lemmerz International, Inc. (Hayes), HLI Parent Company, Inc. (Parent), HLI Opco, and substantially all of our domestic subsidiaries and certain of our foreign subsidiaries (collectively, excluding Hayes, the Guarantors) fully and unconditionally guaranteed, on a joint and several basis, the Senior Notes. This guarantor structure is a result of the restructuring of our debt in May of 2007. At April 30, 2009 certain of our foreign subsidiaries were not obligated to guaranty the Senior Notes, nor were our domestic subsidiaries that are special purpose entities formed for domestic accounts receivable securitization programs (collectively, the Nonguarantor Subsidiaries). In lieu of providing separate unaudited financial statements for each of the Guarantors, we have included the unaudited supplemental guarantor condensed consolidating financial statements. We do not believe that separate financial statements for each of the Guarantors are material to investors. Therefore, separate financial statements and other disclosures concerning the Guarantors are not presented.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended April 30, 2009
(Unaudited)


							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
Net sales	$	—		$	—		$	172.5		$	88.7		$	(3.0	)	$	258.2
Cost of goods sold		—			—			174.4			87.0			(2.8	)		258.6

Gross profit		—			—			(1.9	)		1.7			(0.2	)		(0.4	)
Marketing, general, and administrative		—			0.3			30.1			5.0			—			35.4
Equity in losses (earnings) of subsidiaries and joint ventures		58.4			—			—			—			(58.4	)		—
Amortization of intangibles		—			—			0.2			1.8			—			2.0
Asset impairments and other restructuring charges		—			—			2.6			1.6			—			4.2
Other income, net		—			—			(0.9	)		(0.1	)		—			(1.0	)

(Loss) earnings from operations		(58.4	)		(0.3	)		(33.9	)		(6.6	)		58.2			(41.0	)
Interest expense (income), net		—			17.0			2.5			2.5			—			22.0
Other non-operating income		—			(0.1	)		(1.5	)		(0.7	)		—			(2.3	)

(Loss) earnings from operations before taxes		(58.4	)		(17.2	)		(34.9	)		(8.4	)		58.2			(60.7	)
Income tax expense (benefit)		—			0.3			(1.0	)		(0.9	)		—			(1.6	)

Consolidated net (loss) income		(58.4	)		(17.5	)		(33.9	)		(7.5	)		58.2			(59.1	)
Less: Net loss attributable to noncontrolling interest		—			—			—			(0.6	)		—			(0.6	)

Net loss (income) attributable to Hayes Lemmerz International, Inc		(58.4	)		(17.5	)		(33.9	)		(6.9	)		58.2			(58.5	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS ~~HAYES LEMMERZ~~For ~~INTERNATIONAL,~~the ~~INC.~~Three ~~AND~~Months ~~SUBSIDIARIES~~Ended April 30, 2008 (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
Net sales	$	—		$	—		$	360.3		$	237.2		$	(23.7	)	$	573.8
Cost of goods sold		—			—			328.7			205.1			(23.7	)		510.1

Gross profit		—			—			31.6			32.1			—			63.7
Marketing, general, and administrative		—			0.3			27.5			11.5			—			39.3
Equity in losses (earnings) of subsidiaries and joint ventures		12.8			—			—			—			(12.8	)		—
Amortization of intangibles		—			—			0.2			2.6			—			2.8
Asset impairments and other restructuring charges		—			—			2.4			0.9			—			3.3
Other income, net		—			—			(2.2	)		(1.2	)		—			(3.4	)

(Loss) earnings from operations		(12.8	)		(0.3	)		3.7			18.3			12.8			21.7
Interest expense, net		—			20.2			(9.8	)		2.9			—			13.3
Other non-operating expense		—			—			0.9			—			0.8			1.7

(Loss) earnings from operations before taxes		(12.8	)		(20.5	)		12.6			15.4			12.0			6.7
Income tax expense		—			—			7.5			5.5			—			13.0

Consolidated net (loss) income		(12.8	)		(20.5	)		5.1			9.9			12.0			(6.3	)
Less: Net income attributable to noncontrolling interest		—			—			—			6.5			—			6.5

Net loss (income) attributable to Hayes Lemmerz International, Inc		(12.8	)		(20.5	)		5.1			3.4			12.0			(12.8	)

CONDENSED CONSOLIDATING BALANCE SHEETS As of January 31, 2007

							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
Cash and cash equivalents	$	—		$	(0.7	)	$	0.5		$	38.6		$	—		$	38.4
Receivables		—			(80.6	)		60.6			278.5			—			258.5
Other receivables		—			43.2			—			—			—			43.2
Inventories		—			0.4			48.5			123.9			—			172.8
Prepaid expenses and other		—			3.1			52.2			12.4			—			67.7
Total current assets		—			(34.6	)		161.8			453.4			—			580.6
Property, plant, and equipment, net		—			30.0			123.8			526.9			—			680.7
Goodwill and other assets		102.3			765.0			(115.6	)		381.6			(703.4	)		429.9
Total assets	$	102.3		$	760.4		$	170.0		$	1,361.9		$	(703.4	)	$	1,691.2
Bank borrowings and other notes	$	—		$	—		$	—		$	27.9		$	—		$	27.9
Current portion of long-term debt		—			4.6			1.1			1.0			—			6.7
Accounts payable and accrued liabilities		—			48.3			59.8			296.2			—			404.3
Total current liabilities		—			52.9			60.9			325.1			—			438.9
Long-term debt, net of current portion		—			657.1			—			2.3			—			659.4
Pension and other long-term liabilities		—			199.5			0.8			233.5			—			433.8
Minority interest		—			12.5			—			44.8			—			57.3
Parent loans		0.5			(176.6	)		(20.5	)		199.1			(2.5	)		—
Common stock		0.4			—			—			—			—			0.4
Additional paid-in capital		678.6			688.3			525.8			569.1			(1,783.2	)		678.6
Retained earnings (accumulated deficit)		(733.6	)		(716.4	)		(406.0	)		(115.8	)		1,238.2			(733.6	)
Accumulated other comprehensive income (loss)		156.4			43.1			9.0			103.8			(155.9	)		156.4
Total stockholders’ equity		101.8			15.0			128.8			557.1			(700.9	)		101.8
Total liabilities and stockholder’s equity	$	102.3		$	760.4		$	170.0		$	1,361.9		$	(703.4	)	$	1,691.2

~~HAYES LEMMERZ~~CONDENSED ~~INTERNATIONAL,~~CONSOLIDATING ~~INC.~~BALANCE ~~AND~~SHEETS As ~~SUBSIDIARIES~~of April 30, 2009 (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
Current Assets:
Cash and cash equivalents	$	—		$	5.8		$	28.1		$	22.8		$	—		$	56.7
Receivables, net		—			—			71.9			64.9			—			136.8
Other receivables		—			—			28.9			28.9			(28.9	)		28.9
Inventories		—			—			98.3			53.5			—			151.8
Assets held for sale		—			—			8.6			—			—			8.6
Prepaid expenses and other current assets		—			—			8.4			3.9			(0.8	)		11.5

Total current assets		—			5.8			244.2			174.0			(29.7	)		394.3
Property, plant, and equipment, net		—			—			290.4			206.1			(0.1	)		496.4
Intangible and other assets, net		(343.0	)		716.7			530.1			47.4			(817.8	)		133.4

Total assets	$	(343.0	)	$	722.5		$	1,064.7		$	427.5		$	(847.6	)	$	1,024.1


Current Liabilities:
Bank borrowings and other notes	$	—		$	—		$	17.8		$	16.7		$	—		$	34.5
Current portion of long-term debt		—			509.4			125.2			0.7			—			635.3
Accounts payable and other accrued liabilities		—			10.7			172.5			82.6			(26.3	)		239.5

Total current liabilities		—			520.1			315.5			100.0			(26.3	)		909.3
Long-term debt, net of current portion		—			—			0.8			0.8			—			1.6
Pension and other long-term liabilities		—			—			324.5			73.6			(4.4	)		393.7
Parent loans		—			5.5			(134.2	)		151.4			(22.7	)		—

Total liabilities		—			525.6			506.6			325.8			(53.4	)		1,304.6

Stockholders’ Deficit:
Common stock		1.0			—			—			—			—			1.0
Additional paid-in capital		887.7			399.9			1,127.6			327.7			(1,855.2	)		887.7
Retained earnings (accumulated deficit)		(1,360.7	)		(255.3	)		(622.5	)		(373.2	)		1,251.0			(1,360.7	)
Accumulated other comprehensive income (loss)		129.0			52.3			41.3			95.4			(189.0	)		129.0

Total Hayes lemmerz International, Inc. stockholders’ (deficit) equity		(343.0	)		196.9			546.4			49.9			(793.2	)		(343.0	)
Noncontrolling interest		—			—			11.7			51.8			(1.0	)		62.5

Total stockholders’ (deficit) equity		(343.0	)		196.9			558.1			101.7			(794.2	)		(280.5	)

Total liabilities and stockholders’ (deficit) equity	$	(343.0	)	$	722.5		$	1,064.7		$	427.5		$	(847.6	)	$	1,024.1

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended April 30, 2007

						Guarantor			Nonguarantor
	Parent		Issuer			Subsidiaries			Subsidiaries			Eliminations		Total
	(Dollars in millions)
	(Unaudited)
Cash flows provided by (used for) operating activities	$	—	$	(20.2	)	$	(3.4	)	$	38.5		$	—	$	14.9
Cash flows from investing activities:
Purchase of property, plant, equipment and tooling		—		(0.6	)		(3.2	)		(12.8	)		—		(16.6	)
Cash used for investing activities		—		(0.6	)		(3.2	)		(12.8	)		—		(16.6	)
Cash flows from financing activities:
Changes in bank borrowings and credit facility		—		—			—			(0.6	)		—		(0.6	)
Borrowing (repayment) of long term debt		—		8.9			(0.4	)		(0.1	)		—		8.4
Dividends paid to minority shareholders		—		—			—			(5.5	)		—		(5.5	)
Cash used for financing activities		—		8.9			(0.4	)		(6.2	)		—		2.3
Increase (decrease) in parent loans and advances		—		17.0			(14.9	)		(2.1	)		—		(0.0	)
Cash flow from discontinued operations		—		—			22.4			1.3			—		23.7
Effect of exchange rates on cash and cash equivalents		—		—			—			2.0			—		2.0
Increase in cash and cash equivalents		—		5.1			0.5			20.7			—		26.3
Cash and cash equivalents at beginning of period		—		(0.7	)		0.5			38.6			—		38.4
Cash and cash equivalents at end of period	$	—	$	4.4		$	1.0		$	59.3		$	—	$	64.7

~~HAYES LEMMERZ~~CONDENSED ~~INTERNATIONAL,~~CONSOLIDATING ~~INC.~~BALANCE ~~AND~~SHEETS As ~~SUBSIDIARIES~~of January 31, 2009

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
Current Assets:
Cash and cash equivalents	$	—		$	5.8		$	61.2		$	40.5		$	—		$	107.5
Receivables, net		—			—			84.6			72.7			—			157.3
Other receivables		—			—			15.4			15.4			(15.4	)		15.4
Inventories		—			—			100.5			56.4			—			156.9
Assets held for sale		—			—			8.1			—			—			8.1
Prepaid expenses and other current assets		—			—			7.4			4.3			(0.8	)		10.9

Total current assets		—			5.8			277.2			189.3			(16.2	)		456.1
Property, plant, and equipment, net		—			—			293.1			206.2			(0.1	)		499.2
Intangible and other assets, net		(292.9	)		702.7			496.2			48.4			(813.5	)		140.9

Total assets	$	(292.9	)	$	708.5		$	1,066.5		$	443.9		$	(829.8	)	$	1,096.2


Current Liabilities:
Bank borrowings and other notes	$	—		$	—		$	25.3		$	21.3		$	—		$	46.6
Current portion of long-term debt		—			496.1			125.2			0.8			—			622.1
Liabilities held for sale		—			—			—			—			—			—
Accounts payable and other accrued liabilities		—			6.6			166.3			92.4			(12.8	)		252.5

Total current liabilities		—			502.7			316.8			114.5			(12.8	)		921.2
Long-term debt, net of current portion		—			—			0.6			0.8			—			1.4
Pension and other long-term liabilities		—			—			331.4			73.6			(4.3	)		400.7
Parent loans		—			(3.2	)		(50.4	)		143.4			(89.8	)		—

Total liabilities		—			499.5			598.4			332.3			(106.9	)		1,323.3

Stockholders’ Deficit:
Common stock		1.0			—			—			—			—			1.0
Additional paid-in capital		887.1			399.9			1,077.8			334.9			(1,812.6	)		887.1
Retained earnings (accumulated deficit)		(1,302.1	)		(237.8	)		(590.7	)		(364.0	)		1,192.5			(1,302.1	)
Accumulated other comprehensive income (loss)		121.1			46.9			(30.6	)		85.5			(101.8	)		121.1

Total Hayes lemmerz International, Inc. stockholders’ (deficit) equity		(292.9	)		209.0			456.5			56.4			(721.9	)		(292.9	)
Noncontrolling interest		—			—			11.6			55.2			(1.0	)		65.8

Total stockholders’ (deficit) equity		(292.9	)		209.0			468.1			111.6			(722.9	)		(227.1	)

Total liabilities and stockholder’s (deficit) equity	$	(292.9	)	$	708.5		$	1,066.5		$	443.9		$	(829.8	)	$	1,096.2

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Three Months Ended April 30, 2006

						Guarantor			Nonguarantor
	Parent		Issuer			Subsidiaries			Subsidiaries			Eliminations		Total
	(Dollars in millions)
	(Unaudited)
Cash flows provided by (used for) operating activities	$	—	$	(1.3	)	$	14.0		$	24.1		$	—	$	36.8
Cash flows from investing activities:
Purchase of property, plant, equipment and tooling		—		(0.2	)		(3.1	)		(7.6	)		—		(10.9	)
Capital contributed by minority shareholders		—		—			—			0.4			—		0.4
Proceeds from disposal of assets and businesses		—		—			—			0.2			—		0.2
Cash used for investing activities		—		(0.2	)		(3.1	)		(7.0	)		—		(10.3	)
Cash flows from financing activities:
Changes in bank borrowings and credit facility		—		—			(0.4	)		(0.2	)		—		(0.6	)
Repayment of long term debt		—		—			—			(0.2	)		—		(0.2	)
Bank finance fees paid		—		(2.9	)		—			—			—		(2.9	)
Dividends paid to minority shareholders		—		—			—			(1.0	)		—		(1.0	)
Cash used for financing activities		—		(2.9	)		(0.4	)		(1.4	)		—		(4.7	)
Increase (decrease) in parent loans and advances		—		9.4			3.8			(13.2	)		—		—
Cash flow from discontinued operations		—		—			(13.7	)		0.1			—		(13.6	)
Effect of exchange rates on cash and cash equivalents		—		—			—			1.9			—		1.9
Increase in cash and cash equivalents		—		5.0			0.6			4.5			—		10.1
Cash and cash equivalents at beginning of period		—		(4.1	)		0.6			45.8			—		42.3
Cash and cash equivalents at end of period	$	—	$	0.9		$	1.2		$	50.3		$	—	$	52.4

Note 16. Subsequent Events

Since April 30, 2007, the Company has completed a number of related financing transactions, which are described below.

Rights Offering

On March 16, 2007 we announced that our Board of Directors approved a Rights Offering (Rights Offering) of up to $180 million of common stock to our stockholders at a subscription price of $3.25 per share. The Board of Directors set the record date of April 10, 2007 for determining the stockholders entitled to participate in the Rights Offering. On April 16, 2007, the Board of Directors approved a direct investment option in favor of Deutsche Bank Securities, Inc. pursuant to which it was entitled to invest approximately $13.1 million to purchase our common stock at a price of $3.25 per share in addition to the shares being offered in the Rights Offering. The Rights Offering and the direct investment option were approved at a special meeting of stockholders held on May 4, 2007. In addition, the stockholders approved an increase to the maximum number of authorized shares of our common stock

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS ~~HAYES LEMMERZ~~For ~~INTERNATIONAL,~~the ~~INC.~~Three ~~AND~~Months ~~SUBSIDIARIES~~Ended April 30, 2009 (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


							Guarantor			Nonguarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
Cash flows used for operating activities	$	—		$	(8.9	)	$	(14.8	)	$	(9.4	)	$	—		$	(33.1	)

Cash flows from investing activities:
Purchase of property, plant, equipment, and tooling		—			—			(1.0	)		(1.5	)		—			(2.5	)
Investments in subsidiaries		(0.6	)		(0.2	)		4.2			(1.6	)		(1.8	)		—
Proceeds from sale of assets		—			—			0.2			—			—			0.2

Cash provided by (used for) investing activities		(0.6	)		(0.2	)		3.4			(3.1	)		(1.8	)		(2.3	)

Cash flows from financing activities:
Changes in bank borrowings and credit facilities		—			—			(8.2	)		(4.0	)		—			(12.2	)
Proceeds from long term debt		—			—			0.2			—			—			0.2
Repayment of long-term debt		—			—			—			(0.1	)					(0.1	)
Dividends paid to minority shareholders		—			—			—			(3.7	)		—			(3.7	)
Proceeds from parent investments		0.6			—			(0.6	)		—			—			—

Cash (used for) provided by financing activities		0.6			—			(8.6	)		(7.8	)		—			(15.8	)

(Decrease) increase in parent loans and advances		—			8.3			(12.7	)		2.6			1.8			—
Cash flows from discontinued operations		—			—			(0.7	)		—			—			(0.7	)
Effect of exchange rates on cash and cash equivalents		—			0.8			0.3						—			1.1

(Decrease) increase in cash and cash equivalents		—			—			(33.1	)		(17.7	)		—			(50.8	)
Cash and cash equivalents at beginning of period		—			5.8			61.2			40.5			—			107.5

Cash and cash equivalents at end of period	$	—		$	5.8		$	28.1		$	22.8		$	—		$	56.7

from 100,000,000 to 200,000,000, and an increase in the maximum number of members of our Board of Directors from nine to twelve.

In May 2007, we distributed to stockholders of record as of April 10, 2007 non-transferable subscription rights to purchase shares of our common stock in connection with the Rights Offering. Stockholders on the record date received 1.3970 rights for each share of our common stock held on the record date. The Rights Offering included an oversubscription privilege entitling holders of the rights to subscribe for additional shares not purchased upon exercise of rights. The Rights Offering was fully subscribed and Deutsche Bank Securities, Inc. exercised its direct investment option. On May 30, 2007 we closed on the Rights Offering and direct investment option and issued 59,423,077 new shares of common stock. Net proceeds, after fees and expenses, were used to repurchase the outstanding 101/2% Senior Notes due 2010 (Old Notes) pursuant to the tender offer described below, with the excess being used to provide working capital and for other general corporate purposes.

Tender Offer for Senior Notes

On May 8, 2007, HLI Opco commenced a cash tender offer to repurchase all of its outstanding Old Notes, which had an aggregate principal amount outstanding of $157.5 million. Concurrently with the tender offer, HLI Opco solicited consents to amend the indenture governing the Old Notes. The tender offer expired at 11:59 p.m., New York City time, on Tuesday, June 5, 2007. The purchase price for the tendered Old Notes was based on a fixed spread of 50 basis points over the yield on the 3.625% U.S. Treasury Note due June 30, 2007. Holders who validly tendered their Old Notes and delivered their consents to the proposed amendments to the indenture on or prior to 5:00 p.m., New York City time, on May 21, 2007, were paid, in addition to the purchase price for the Old Notes, a consent payment equal to $30.00 per $1,000 in principal amount of Old Notes. Holders of approximately $154.2 million principle amount tendered their Old Notes and consented to the amendments to the Indenture.

On May 25, 2007 HLI Opco executed the Supplemental Indenture, which effects amendments to the Indenture with respect to the Old Notes that result in the permanent elimination of certain restrictive covenants, certain conditions on defeasance, certain conditions on mergers, consolidations and sales of asset transactions and certain events of default in the Indenture and the Old Notes, including, among other things, covenants that limit our ability to incur indebtedness, make restricted payments, create or incur liens and engage in mergers or consolidations or transfers of all or substantially all of our property and assets. The Supplemental Indenture became operative on May 30, 2007, upon the repurchase by HLI Opco of the Old Notes validly tendered on or before May 21, 2007.

New Senior Notes

On May 30, 2007 we closed on a new offering of €130 million 81/4% senior unsecured notes (New Notes) issued by Hayes Lemmerz Finance LLC — Luxembourg S.C.A., a newly formed European subsidiary (Hayes Luxembourg). The New Notes mature in 2015 and contain customary covenants and restrictions. The New Notes and the related Indenture restrict our ability to, among other things, make certain restricted payments, incur debt and issue preferred stock, incur liens, permit dividends and other distributions by our subsidiaries, merge, consolidate, or sell assets, and engage in transactions with affiliates. The New Notes and the Indenture also contain customary events of default, including failure to pay principal or interest on the Notes or the guarantees when due, among others. The New Notes are fully and unconditionally guaranteed on a senior unsecured basis by us and substantially all of our direct and indirect domestic subsidiaries and, subject to certain exceptions, by certain of our indirect foreign subsidiaries. Proceeds from the issuance of the New Notes, together with the proceeds from the New Credit Facilities (as described below), were used to refinance obligations under our Amended and Restated Credit Agreement, dated as of April 11, 2005, to repay in full the approximately $21.7 million mortgage note on our headquarters building in Northville, Michigan, to pay related fees and expenses, and for working capital and other general corporate purposes.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS ~~HAYES LEMMERZ~~For ~~INTERNATIONAL,~~the ~~INC.~~Three ~~AND~~Months ~~SUBSIDIARIES~~Ended April 30, 2008 (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


						Guarantor			Nonguarantor
	Parent		Issuer			Subsidiaries			Subsidiaries			Eliminations			Total
	(Dollars in millions)
Cash flows used for operating activities	$	—	$	(14.8	)	$	(9.3	)	$	(6.9	)	$	(0.8	)	$	(31.8	)

Cash flows from investing activities:
Purchase of property, plant, equipment, and tooling		—		—			(7.4	)		(11.8	)		—			(19.2	)
Investments in subsidiaries		—		(0.6	)		(29.3	)		(35.4	)		65.3			—
Proceeds from sale of assets		—		—			0.3			0.2			—			0.5

Cash (used for) provided by investing activities		—		(0.6	)		(36.4	)		(47.0	)		65.3			(18.7	)

Cash flows from financing activities:
Changes in bank borrowings and credit facilities		—		—			—			2.1			—			2.1
Repayment of long-term debt		—		—			—			(0.1	)		—			(0.1	)
Dividends paid to minority shareholders		—		—			—			(7.3	)		—			(7.3	)
Proceeds from parent investments		—		—			38.7			27.8			(66.5	)		—

Cash provided by (used for) financing activities		—		—			38.7			22.5			(66.5	)		(5.3	)

(Decrease) increase in parent loans and advances		—		(25.9	)		(5.4	)		29.3			2.0			—
Effect of exchange rates on cash and cash equivalents		—		2.3			0.6			(0.5	)		—			2.4

Decrease in cash and cash equivalents		—		(39.0	)		(11.8	)		(2.6	)		—			(53.4	)
Cash and cash equivalents at beginning of period		—		84.7			30.3			45.2			—			160.2

Cash and cash equivalents at end of period	$	—	$	45.7		$	18.5		$	42.6		$	—		$	106.8

New Credit Facilities

On May 30, 2007 we closed on three new senior secured credit facilities in an amount of approximately $495 million (New Credit Facilities). The New Credit Facilities consist of a term loan facility of €260 million maturing in 2014 borrowed by Hayes Luxembourg, a revolving credit facility of $125 million maturing in 2013 available to HLI Opco and Hayes Luxembourg, and a synthetic letter of credit facility of €15 million available to both borrowers. The interest rate for the term loan is generally the EURIBO rate plus 2.75% per annum until the first date after October 31, 2007 that our leverage ratio is equal to or less than 2.50 to 1.0 and, thereafter, the EURIBO rate plus 2.50% per annum. The interest rate for the revolving credit facility is generally either the LIBOR rate plus 2.75% per annum (for borrowings by HLI Opco) or the EURIBO rate (for borrowings by Hayes Luxembourg).

The obligations of HLI Opco and Hayes Luxembourg under the New Credit Facility are guaranteed by us and substantially all of our direct and indirect domestic subsidiaries. In addition, the obligations of Hayes Luxembourg under the New Credit Facility are guaranteed, subject to certain exceptions, by certain of its foreign subsidiaries. The obligations of HLI Opco and Hayes Luxembourg under the New Credit Facility and the guarantors’ obligations under their respective guarantees of the New Credit Facility are, subject to certain exceptions, secured by a first priority perfected pledge of substantially all intercompany notes and capital stock owned by the borrowers and the guarantors (but not more than 65% of the capital stock of Hayes Luxembourg or any foreign subsidiary can secure HLI Opco’s obligations) and substantially all of the other assets owned by the borrowers and the guarantors. All foreign guarantees and collateral are subject to applicable restrictions on cross-stream and upstream guarantees and other legal restrictions, including financial assistance rules, thin capitalization rules, and corporate benefit rules.

The New Credit Facilities contain negative covenants restricting our ability and the ability of our subsidiaries to, among other actions, declare dividends or repay or repurchase capital stock, cancel, prepay, redeem or repurchase debt, incur liens and engage in sale-leaseback transactions, make loans and investments, incur indebtedness, amend or otherwise alter certain debt documents, engage in mergers, acquisitions and asset sales, engage in transactions with affiliates, and alter their respective businesses. The financial covenants under the New Credit Facilities include covenants regarding a maximum total leverage ratio, a minimum interest coverage ratio and a maximum capital expenditures amount. There is no financial covenant regarding minimum fixed charged coverage ratio under the New Credit Facilities. The New Credit Facilities contain customary events of default including, without limitation, failure to pay principal and interest when due, material inaccuracy of any representation or warranty, failure to comply with any covenant, cross-defaults, failure to satisfy or stay execution of judgments in excess of specified amounts, bankruptcy or insolvency, the existence of certain materially adverse employee benefit liabilities in excess of a certain specified amount, the invalidity or impairment of any loan documents and a change of control.

The proceeds from the New Credit Facilities, together with the proceeds of other financing activities, were used to refinance our obligations under our Amended and Restated Credit Agreement dated April 11, 2005. Additional proceeds will be used to replace existing letters of credit and to provide for working capital and other general corporate purposes, and to pay the fees and expenses associated with the New Credit Facilities.

~~HAYES LEMMERZ~~Note ~~INTERNATIONAL, INC~~16. ~~AND~~Subsequent ~~SUBSIDIARIES~~Events

On May 11, 2009, the Debtors filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. On May 12, 2009 and May 19, 2009 we, HLI Opco and Hayes Luxembourg, entered ~~NOTES~~into amendments to the Credit Agreement to provide up to $100 TOmillion in New Money DIP Loans and ~~CONSOLIDATED~~$100 million ~~FINANCIAL~~in Roll-up Loans, respectively. The Bankruptcy Court granted final approval of the DIP ~~STATEMENTS~~Credit Agreement on June —15, 2009. With the exception of Hayes Luxembourg, the Company’s subsidiaries and operations outside the United States were not included in the filing are not debtors in the Chapter ~~(Continued)~~11 cases or any other proceeding outside the United States, and are expected to continue to operate in the ordinary course of business outside and unaffected by the Chapter 11 cases process.

We cannot provide any assurance as to what values, if any, will be ascribed in our bankruptcy proceedings to our various pre-petition liabilities, common stock, and other securities. On June ~~Pro~~8, 2009, our common stock was delisted from the NASDAQ Global Market following our filings under ~~Forma~~Chapter 11. ~~Capitalization~~We believe that our currently outstanding common stock will have no value and will be cancelled under any plan of reorganization we may propose under Chapter 11. We also believe that the holders of our Senior Notes are unlikely to receive more than a de minimis distribution on account of their interests in the Senior Notes and that such interests could be cancelled under any plan of reorganization the Company may propose under Chapter 11. There can, however, be no assurance, however, that the Company will be able to develop, propose, and implement a successful plan of reorganization.

~~The~~ On ~~following~~June ~~table~~8 ~~represents~~2009 ~~our~~we ~~pro~~were ~~forma~~delisted ~~capitalization~~from ~~as of~~the ~~April 30,~~NASDAQ ~~2007~~Stock ~~reflecting~~Market following the ~~impact~~filing of our ~~Rights~~ ~~Offering~~Chapter 11 proceeding. We believe that our currently outstanding common stock will have no value and ~~new~~will ~~debt~~be ~~financing~~cancelled ~~(dollars~~under inany ~~millions):~~plan of reorganization we may propose under Chapter 11.

	Actual		Adjustments			As Adjusted
			(Unaudited)
Total cash and cash equivalents	$	64.7	$	26.4		$	91.1
Debt
Bank borrowings and other notes		28.8		—			28.8
Debt of foreign subsidiaries		3.4		—			3.4
Revolving credit facility		10.0		(10.0	)		—
Term Loan B		326.7		(326.7	)		—
New Term Loan		—		350.5			350.5
Term Loan C		150.0		(150.0	)		—
10.5% Senior notes		157.2		(157.2	)		—
New 8.25% Senior notes		—		175.2			175.2
Mortgage note payable		21.7		(21.7	)		—
Capital lease obligations		0.7		—			0.7
Total Debt		698.5		(139.9	)		558.6
Minority interest		55.3		—			55.3
Total stockholders’ equity		130.4		166.5	(a)		296.9
Total Capitalization	$	884.2	$	26.6		$	910.8

In May 2009 our interest rate swap agreements were terminated due to our bankruptcy filing on May 11, 2009.

(a) Net proceeds from Rights Offering of $189.6 million less call premium on 10.5% Senior Notes of $9.0 million less $11.9 million of unamortized banks fees on old term debt, less $2.2 million in legal expenses

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary and Chapter 11 Matters

This discussion should be read in conjunction with the our Annual Report on Form 10-K for the fiscal year ended January 31, ~~2007~~2009 as filed with the Securities and Exchange Commission on ~~April~~May 911, ~~2007,~~ 2009, and the other information included herein. Unless otherwise indicated, references to “we,” “us,” or “our” mean Hayes Lemmerz International, Inc., a Delaware corporation, and its subsidiaries. References to a fiscal year means the 12-month period commencing on February 1 of that year and ending on January 31 of the following year (i.e., “fiscal 2009” refers to the period beginning February 1, 2009 and ending January 31, 2010, “fiscal 2008” refers to the period beginning February 1, 2008 and ending January 31, 2009).

Company Overview

~~Unless~~ Originally ~~otherwise~~founded ~~indicated~~in 1908, ~~references~~we toare ~~“we,” “us,”~~a orleading ~~“our”~~worldwide ~~mean~~producer ~~Hayes~~of ~~Lemmerz~~aluminum and steel wheels ~~International,~~for ~~Inc.,~~passenger acars ~~Delaware~~and ~~corporation,~~light trucks and ~~our subsidiaries~~of steel wheels for commercial trucks and trailers. ~~References~~We toare also a ~~fiscal~~supplier ~~year~~of ~~means~~automotive ~~the 12-month period~~powertrain ~~commencing~~components. onWe ~~February~~have 1global ofoperations ~~that~~with ~~year~~23 facilities, including business and ~~ending~~sales ~~on January~~offices 31and ofmanufacturing ~~the~~facilities ~~following~~located ~~year~~in ~~(i.e.,~~12 ~~“fiscal~~countries ~~2007”~~around ~~refers~~the world. We sell our products to ~~the~~every ~~period~~major ~~beginning~~North ~~February 1~~American, ~~2007~~Japanese, and ~~ending~~European manufacturer ~~January 31,~~of ~~2008,~~passenger ~~“fiscal~~cars ~~2006”~~and ~~refers~~light trucks and to ~~the period~~commercial ~~beginning~~highway ~~February 1,~~vehicle ~~2006~~customers ~~and~~throughout ~~ending~~the ~~January 31, 2007)~~world.

~~Originally~~ Sales ~~founded in 1908, we are a leading worldwide producer~~ of ~~aluminum~~our ~~and steel~~ wheels ~~for passenger cars~~ and ~~light~~powertrain ~~trucks and~~components ofproduced ~~steel~~in ~~wheels~~North ~~for~~America ~~commercial~~are ~~trucks~~directly ~~and trailers. We are~~affected ~~also~~by athe ~~leading~~overall ~~supplier~~level of ~~automotive~~passenger ~~suspension~~car, ~~brake~~light truck, and ~~powertrain~~ ~~components.~~commercial Wehighway ~~have~~vehicle ~~global~~production ~~operations~~of North ~~with~~American ~~30 facilities~~OEMs, ~~including~~while ~~business and~~ sales ~~offices,~~of ~~manufacturing facilities,~~our ~~and~~wheels ~~technical~~in ~~centers,~~Europe ~~located~~are indirectly 14affected ~~countries around~~by the ~~world.~~overall vehicle Weproduction ~~sell~~in ~~our~~Europe. ~~products~~The ~~to every major~~ North American, ~~Japanese,~~ and European ~~manufacturer~~automotive ofindustries ~~passenger~~are ~~cars~~sensitive ~~and light trucks and~~ to ~~commercial~~the ~~highway~~overall ~~vehicle~~strength ~~customers throughout~~of ~~the~~their ~~world~~respective economies.

We are organized based primarily on markets served and products produced. Under this ~~Sales~~organizational ofstructure, our ~~wheels,~~operating ~~wheel-end~~segments ~~attachments,~~have ~~aluminum~~been ~~structural~~aggregated into two reportable segments: ~~components,~~Automotive Wheels and ~~brake~~Other. ~~components~~The ~~produced~~Automotive inWheels ~~North~~segment ~~America~~includes ~~are~~results from our operations ~~directly~~that ~~affected~~primarily bydesign ~~the~~and ~~overall~~manufacture ~~level~~fabricated ofsteel and cast aluminum wheels for original equipment manufacturers in the global passenger car, light ~~truck~~ vehicle, and commercial ~~highway~~ vehicle ~~production of North~~markets. ~~American~~The ~~OEMs,~~Other ~~while~~segment ~~sales~~includes ofresults from our ~~wheels~~operations ~~and~~that ~~automotive~~primarily ~~castings in~~design ~~Europe~~and ~~are~~manufacture powertrain ~~directly~~components ~~affected~~for bypassenger ~~the~~car ~~overall~~and light vehicle ~~production~~ inmarkets ~~Europe.~~as ~~The~~well ~~North~~as ~~American~~financial ~~and~~results related ~~European~~to ~~automotive industries~~the ~~are~~corporate ~~sensitive~~office toand the ~~overall~~elimination ~~strength~~ of ~~their respective~~certain ~~economies~~intercompany activities.

24 We are organized based primarily on markets served and products produced. Under this organizational structure, our operating segments have been aggregated into three reportable segments: Automotive Wheels, Components, and Other. The Automotive Wheels segment includes results from our operations that primarily design and manufacture fabricated steel and cast aluminum wheels for original equipment manufacturers in the global passenger car, light vehicle, and heavy duty truck markets. The Components segment includes results from our operations that primarily design and manufacture suspension, brake, and powertrain components for original equipment manufacturers in the global passenger car and light vehicle markets. The Other segment includes financial results related to the corporate office and the elimination of certain intercompany activities.

InTable the first three months of fiscal 2007 we had net sales of $561 million with approximately 74% derived from international markets. For the full year of fiscal 2006, we had sales of $2.1 billion with approximately 73% derived from international markets. We had earnings from operations of $20.1 million for the first three months of fiscal 2007 and $6.6 million for the full year of fiscal 2006. Contents

In the first three months of fiscal 2009 we had net sales of $258.2 million with approximately 74% derived from international markets. In the three months of fiscal 2008 we had net sales of $573.8 million with approximately 84% derived from international markets. We had loss from operations of $41.0 million for the first three months of fiscal 2009 compared to earnings from operations of $21.7 million for the first three months of fiscal 2008.

Chapter 11 Bankruptcy Filings

On May 11, 2009, we and certain of our subsidiaries (together with us, Debtors) filed voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code (Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware (Bankruptcy Court). The cases are being jointly administered under Case No. 09-11655 (MFW). With the exception of Hayes Lemmerz Finance LLC—Luxembourg S.C.A. (Hayes Luxembourg), the Company’s subsidiaries and operations outside the United States were not included in the filing, are not debtors in the Chapter 11 cases or any other proceeding outside the United States, and are expected to continue to operate in the ordinary course of business outside and unaffected by the Chapter 11 cases and process.

We cannot provide any assurance as to what values, if any, will be ascribed in our bankruptcy proceedings to our various pre-petition liabilities, common stock, and other securities. We believe that our currently outstanding common stock will have no value and will be canceled under any plan of reorganization we may propose under Chapter 11. We also believe that the holders of our Senior Notes are unlikely to receive more than a de minimis distribution on account of their interests in the Senior Notes and that such interests could be cancelled under any plan of reorganization the Company may propose under Chapter 11. There can, however, be no assurance, that the Company will be able to develop, propose, and implement a successful plan of reorganization. Accordingly, caution should be exercised with respect to existing and future investments in any of these liabilities or securities. Trading of our common stock on the NASDAQ Stock Market was suspended on May 21, 2009, and our common stock was delisted from the NASDAQ Stock Market on June 8, 2009.

The following discussion provides general background information regarding our Chapter 11 proceedings and is not intended to be an exhaustive summary. Additional information about our bankruptcy filings may be obtained at our web site, www.hayeslemmerzreorg.com, and Bankruptcy Court filings and claims information can also be accessed through this web site. Information contained on our web sites is not incorporated into this Quarterly Report on Form 10-Q.

Chapter 11 Process

The Debtors are currently operating as “debtors in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. In general, as debtors in possession, we are authorized under Chapter 11 to continue to operate as an ongoing business, but we may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court.

The Bankruptcy Court has approved payment of certain of the Debtors’ pre-petition obligations, including, among other things, employee wages, salaries, and benefits, and the Bankruptcy Court has approved the Company’s payment of vendors and other providers in the ordinary course for goods and services received from and after the Petition Date and other business-related payments necessary to maintain the operation of our businesses. The Debtors have retained, subject to Bankruptcy Court approval, legal and financial professionals and certain other “ordinary course” professionals to advise the Debtors on the bankruptcy proceedings. From time to time, the Debtors may seek Bankruptcy Court approval for the retention of additional professionals.

Shortly after the Petition Date, the Debtors began notifying all known current or potential creditors of the Chapter 11 filing. Subject to certain exceptions under the Bankruptcy Code, the Debtors’ Chapter 11 filing automatically enjoined, or stayed, the continuation of any judicial or administrative proceedings or other actions against the Debtors or their property to recover on, collect, or secure a claim arising prior to the Petition Date. Thus, for example, most creditor actions to obtain possession of property from the Debtors, or to create, perfect, or enforce any lien against the property of the Debtors, or to collect on monies owed or otherwise exercise rights or remedies with respect to a pre-petition claim are enjoined unless and until the Bankruptcy Court lifts the automatic stay. Vendors are being paid for goods furnished and services provided after the Petition Date in the ordinary course of business.

As required by the Bankruptcy Code, the United States Trustee for the District of Delaware appointed an official committee of unsecured creditors (Creditors’ Committee). The Creditors’ Committee and its legal representatives have a right to be heard on all matters that come before the Bankruptcy Court with respect to the Debtors. There can be no assurance that the Creditors’ Committee will support the Debtors’ positions on matters to be presented to the Bankruptcy Court in the future or on any plan of reorganization, once proposed. Disagreements between the Debtors and the Creditors’ Committee could protract the Chapter 11 proceedings, adversely affect the Debtors’ ability to operate, and delay the Debtors’ emergence from the Chapter 11 proceedings.

Under Section 365 and other relevant sections of the Bankruptcy Code, we may assume, assume and assign, or reject certain executory contracts and unexpired leases, including, without limitation, leases of real property and equipment, subject to the approval of the Bankruptcy Court and certain other conditions. Any description of an executory contract or unexpired lease in this report, including when applicable our express termination rights or a quantification of our obligations, must be read in conjunction with, and is qualified by, any overriding rejection rights we have under Section 365 of the Bankruptcy Code.

In order to successfully exit the Chapter 11 proceedings, the Debtors will need to propose, and obtain confirmation by the Bankruptcy Court of a plan of reorganization that satisfies the requirements of the Bankruptcy Code. A plan of reorganization would, among other things, resolve the Debtors’ pre-petition obligations, set forth the revised capital structure of the newly reorganized entity, and provide for corporate governance subsequent to exit from bankruptcy.

The Debtors have the exclusive right for 120 days after the Petition Date to file a plan of reorganization and, if we do so, 60 additional days to obtain necessary acceptances of our plan. We may file one or more motions to request extensions of these periods. If the Debtors’ exclusivity period lapses, any party in interest will be able to file a plan of reorganization for any of the Debtors. In addition to being voted on by holders of impaired claims and equity interests, a plan of reorganization must satisfy certain requirements of the Bankruptcy Code and must be approved, or confirmed, by the Bankruptcy Court in order to become effective.

The timing of filing a plan of reorganization by us will depend on the timing and outcome of numerous other ongoing matters in the Chapter 11 proceedings. There can be no assurance at this time that a plan of reorganization will be confirmed by the Bankruptcy Court or that any such plan will be implemented successfully. If we are unable to successfully recapitalize the Company and restructure our indebtedness under Chapter 11, we may be forced to liquidate the Company.

We have incurred and will continue to incur significant costs associated with our reorganization. The amount of these costs, which are being expensed as incurred, are expected to significantly affect our results of operations.

Under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, pre-petition liabilities and post-petition liabilities must be satisfied in full before our stockholders are entitled to receive any distribution or retain any property under a plan of reorganization. The ultimate recovery to creditors and stockholders, if any, will not be determined until confirmation of a plan or plans of reorganization. No assurance can be given as to what values, if any, will be ascribed in the Chapter 11 cases to each of these constituencies or what types or amounts of distributions, if any, they would receive. We believe that our currently outstanding common stock will have no value and will be cancelled under any plan of reorganization we may propose under Chapter 11. We also believe that the holders of our Senior Notes are unlikely to receive more than a de minimis distribution on account of their interests in the Senior Notes and that such interests could be cancelled under any plan of reorganization the Company may propose. Because of such possibilities, the value of our liabilities and securities, including our common stock, is highly speculative. Appropriate caution should be exercised with respect to existing and future investments in any of the liabilities and securities of the Debtors. At this time there is no assurance we will be able to restructure as a going concern or successfully propose or implement a plan of reorganization.

Chapter 11 Financing

In connection with the Chapter 11 filing, the Company, HLI Operating Company, Inc., (HLI Opco) and Hayes Luxembourg, the Lenders party thereto, Deutsche Bank AG New York Branch, as DIP Administrative Agent, Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Joint Syndication Agents for the DIP Facilities, and Deutsche Bank Securities Inc., as Documentation Agent for the DIP Facilities, entered into Amendment No. 2, dated as of May 12, 2009, and Amendment No. 3, dated as of May 19, 2009, to the Company’s Second Amended and Restated Credit Agreement, dated as of May 30, 2007, as amended by Amendment No. 1, dated as of January 30, 2009, with the lenders party thereto (Credit Agreement). Pursuant to the amended Credit Agreement (DIP Credit Agreement) debtor-in-possession loan tranches (DIP Loans) were added to the Credit Agreement, including up to $100 million of additional liquidity to provide operating funds to the Company and its subsidiaries during the restructuring.

The initial DIP Loans consisted of a committed senior secured debtor-in-possession new money term loan facility (New Money DIP Loans) in an aggregate principal amount of up to $100 million and a senior secured debtor-in-possession roll-up loan facility (Roll-up Loans) in an aggregate principal amount of up to $100 million. The Roll-up Loans will be issued to the pre-petition lenders under the Credit Agreement who make New Money DIP Loans in exchange for the pre-petition loans such lenders hold under the Credit Agreement; the Roll-up Loans will be deemed issued to the lenders upon the occurrence of a triggering event in the future. The DIP Loans benefit from a super-priority claim and lien on the assets of the Borrowers pursuant to a Bankruptcy Court order. On May 14, 2009, the Bankruptcy Court approved an interim order (Interim DIP Order) that authorized the borrowing of up to $30 million of New Money DIP Loans, which was borrowed on May 14, 2009.

On May 14, 2009, the Honorable Judge Mary F. Walrath of the Bankruptcy Court approved an interim order that authorized the borrowing of up to $30 million of New Money DIP Loans. On June 15, 2009, the Bankruptcy Court granted final approval of the DIP Credit Agreement. As a result, an additional $70 million of New Money DIP Loans has become available to the Borrowers.

The proceeds of the New Money DIP Loans incurred under the DIP Credit Agreement will be used (i) to pay costs, fees, and expenses related to the execution and delivery of the DIP Credit Agreement, (ii) to repay certain of the pre-petition loans (through the exchange of Roll-up Loans), (iii) to provide working capital from time to time for the Debtors and the Company’s non-U.S. subsidiaries, (iv) for other general corporate purposes of the Debtors and the Company’s non-U.S. subsidiaries, and (v) to pay administrative costs of the Chapter 11 cases and claims or amounts approved by the Bankruptcy Court. The proceeds of the DIP Loan are deposited in depositary accounts and can be withdrawn no more than twice per week and then only to the extent needed to pay permitted expenses payable in the five business days following each withdrawal in accordance with approved budgets.

The New Money DIP Loans will bear cash interest at the rate of LIBOR (with a floor of 6.00% per annum), plus 14% per annum, and interest paid-in-kind (PIK Interest) at a rate of 6.00% per annum. After the Roll-up Loans are deemed to be borrowed, borrowings under the New Money DIP Loans and Roll-up Loans will bear cash interest at the rate of LIBOR (with a floor of 3.00% per annum), plus 7% per annum, plus PIK Interest of 3.00% per annum. During the continuance of an event of default under the DIP Credit Agreement, borrowings will bear interest at an additional 2.00% per annum. In addition, the DIP Credit Agreement obligates the Debtors to pay certain fees to the agents and lenders thereunder.

Obligations under the DIP Credit Agreement are secured by a lien on substantially all of the assets of the Debtors (which lien will have a first priority with respect to substantially all of the Debtors’ assets) and a super-priority administrative expense claim in each of the Chapter 11 cases. The obligations under the DIP Credit Agreement are guaranteed by the Company and its domestic subsidiaries pursuant to a Guaranty, dated as of May 12, 2009. Subject to local law and other impediments, certain of the Company’s foreign subsidiaries are required to take commercially reasonable actions to guarantee the obligations under the DIP Credit Agreement and grant liens on their assets in support of those guarantees.

The maturity date of the obligations under the DIP Credit Agreement will be the earliest of: (i) six months following the date on which the Bankruptcy Court grants interim approval of the DIP Credit Agreement (which may be extended by up to three months by a majority of the DIP lenders); (ii) the effective date of a plan of reorganization for any Debtor; (iii) forty days after the date on which the Bankruptcy Court granted interim approval of the DIP Credit Agreement, if the Bankruptcy Court has not granted final approval of the DIP Credit Agreement; and (iv) the acceleration of obligations under the DIP Credit Agreement or termination of the new money term loan commitments under the DIP Credit Agreement, including, without limitation, as a result of the occurrence of an event of default.

Results of Operations

Consolidated Results — Comparison of the Three Months Ended April 30, ~~2007~~2009 to the Three Months Ended April 30, 2008 ~~2006~~

The following table presents selected information about our consolidated results of operations for the periods indicated (dollars in millions):

	Three Months			Three Months
	Ended			Ended
	April 30,			April 30,
	2007			2006			$ Change			% Change
Net sales:
Automotive Wheels	$	466.8		$	403.8		$	63.0			15.6	%
Components		94.2			99.7			(5.5	)		(5.5	)%
Total	$	561.0		$	503.5		$	57.5			11.4	%
Gross profit	$	61.5		$	46.9		$	14.6			31.1	%
Marketing, general, and administrative		38.6			34.6			4.0			11.6	%
Asset impairments and other restructuring charges		2.4			3.5			(1.1	)		(31.4	)%
Other expense, net		0.4			1.4			(1.0	)		(71.4	)%
Earnings from operations		20.1			7.4			12.7			171.6	%
Interest expense, net		18.3			16.9			1.4			8.3	%
Other non-operating expense		0.3			0.2			0.1			50.0	%
Income tax expense		8.6			5.5			3.1			56.4	%
Minority interest		3.7			1.9			1.8			94.7	%
Loss from continuing operations		(10.8	)		(17.1	)		6.4			37.4	%
Loss from discontinued operations, net of tax of $0.0		(4.5	)		(0.5	)		(4.0	)		(800.0	)%
Net loss	$	(15.3	)	$	(17.6	)	$	2.3			13.1	%


	Three Months Ended April 30,
	2009			2008			$ Change			% Change
Net sales:
Automotive Wheels	$	247.1		$	562.0		$	(314.9	)		(56.0	%)
Other		11.1			11.8			(0.7	)		(5.9	%)

Total	$	258.2		$	573.8		$	(315.6	)		(55.0	%)


Gross profit	$	(0.4	)	$	63.7		$	(64.1	)		(100.6	%)
Marketing, general, and administrative		35.4			39.3			(3.9	)		(9.9	%)
Amortization of intangibles		2.0			2.8			(0.8	)		(28.6	%)
Asset impairments and other restructuring charges		4.2			3.3			0.9			27.3	%
Other income, net		(1.0	)		(3.4	)		2.4			(70.6	%)

Loss (earnings) from operations		(41.0	)		21.7			(62.7	)		(288.9	%)
Interest expense, net		22.0			13.3			8.7			65.4	%
Other non-operating (income) expense		(2.3	)		1.7			(4.0	)		(235.3	%)

(Loss) earnings from operations before taxes		(60.7	)		6.7			(67.4	)		(1006.0	%)
Income tax (benefit) expense		(1.6	)		13.0			(14.6	)		112.3	%

Consolidated net loss		(59.1	)		(6.3	)		(52.8	)		(838.1	%)
Less: Net (loss) income attributable to noncontrolling interest		(0.6	)		6.5			(7.1	)		109.2	%

Net loss attributable to Hayes Lemmerz International, Inc	$	(58.5	)	$	(12.8	)	$	(45.7	)		(357.0	%)

Sales

Our net sales ~~increased~~decreased 1155.40% or $57315.56 million to $~~561~~258.02 million in the first quarter of fiscal ~~2007~~2009 from $~~503~~573.58 million in the first quarter of fiscal ~~2006~~2008. ~~Higher~~Lower volumes and mix ~~metal~~decreased ~~pass-through~~sales ~~pricing~~by $258.2 million due to ongoing trends and ~~favorable~~conditions ~~fluctuations~~facing inNorth ~~foreign~~American and ~~exchange~~European vehicle manufacturers, which have been negatively impacted due to the global recession, troubled capital markets and volatile commodity prices. Unfavorable foreign currency exchange rates relative to the ~~U.S.~~ US dollar ~~increased~~decreased sales by $2443.58 million as the Euro and ~~$26.5~~other currencies have declined during the quarter ended April ~~million~~30, ~~respectively. Higher~~2009 ~~volume~~as ~~and~~compared ~~favorable~~to ~~product~~the ~~mix~~same ~~increased~~period ~~sales~~of bytime in the $7prior year.~~8 million~~ The sale of our Hoboken, ~~while~~Belgium ~~lower~~facility ~~pricing~~during ~~decreased~~the second quarter of fiscal 2008 caused net sales to decrease by $115.30 million.

Gross profit

Our gross profit ~~increased~~decreased 31100.16% or $1464.61 million induring the first quarter of fiscal ~~2007~~2009 to loss of $610.54 million ~~from~~ compared to profit of $4663.97 million induring the first quarter of fiscal ~~2006~~2008. ~~Higher~~ ~~metal pass-through pricing increased gross profit by $5.5 million.~~ Lower ~~pricing~~volumes and ~~unfavorable product~~ mix decreased gross profit by $170.84 million~~, partially offset by higher volume~~. The ~~remaining~~sale ~~gross~~of ~~profit~~the ~~increase~~Hoboken, ~~was primarily~~Belgium ~~due~~plant toduring ~~lower~~the ~~depreciation~~second ~~expense,~~quarter ~~improved~~of ~~operational efficiencies~~fiscal 2008, ~~and~~which ~~favorable~~had ~~fluctuations~~been inexperiencing ~~foreign~~losses, ~~exchange~~improved gross ~~rates~~profit by $4.3 million.

Marketing, general, and administrative

Our marketing, general, and administrative expense ~~increased~~ decreased $43.09 million to $3835.64 million during the first quarter of fiscal ~~2007~~2009 from $3439.63 million in the first quarter of fiscal 2008. During the first quarter of fiscal ~~2006~~2009, we experienced $8.8 million ~~This~~of ~~increase~~higher isprofessional ~~primarily~~service fees, ~~due~~which relate primarily to ~~increased incentive~~expenses ~~plan~~incurred ~~payouts~~associated ~~and~~with our restructuring initiatives. Fluctuations in foreign currency exchange ~~rate~~rates ~~fluctuations~~improved our marketing, ~~partially~~ ~~offset~~general, and administrative expenses by ~~the~~$3.2 million. ~~wage~~Headcount ~~base~~reductions ~~decrease~~due into the ~~first~~lower ~~quarter~~volumes improved our expenses by $3.1 million, and reductions on our long-term incentive plans improved expenses by $1.0 million. The remainder of ~~fiscal~~the ~~2006~~variance is primarily due to decreased controllable expenses as a result of cost savings initiatives.

Asset impairments and other restructuring charges

Impairments and restructuring charges were $0.9 million higher as compared to the same period ~~During~~in the ~~first~~prior year. For the quarter ofended ~~fiscal~~April 30, ~~2007~~2009, we recorded ~~facility closure~~$2.9 million ~~and~~of restructuring severance ~~charges~~in oforder ~~$2.4 million.~~to Inalign our headcount with the ~~Automotive~~ ~~Wheels~~decrease ~~segment~~in wevolumes. ~~recorded~~The ~~expense~~current ofquarter also includes $20.36 million, ~~principally related~~ to ~~facility~~impair ~~closure~~the ~~costs at~~value of our ~~Huntington~~Howell, ~~Indiana~~Michigan ~~aluminum~~facility ~~wheel~~to ~~facility~~its asfair ~~well~~value asand ~~machinery~~the ~~and~~facility ~~equipment~~was ~~impairments~~recorded atas ~~our~~an ~~Brazil~~asset ~~aluminum~~held ~~wheel facility.~~for ~~The~~sale ~~Other~~as ~~segment~~of ~~expense~~April 30, of2009. We also recorded $0.1 4 million ~~is primarily~~of ~~related~~continuing toclosure ~~severance~~costs ~~expense~~for at our ~~corporate~~Gainesville, ~~offices~~Georgia facility. Punch Property International NV has not completed the purchase of the Gainesville property as

28 During the first quarter of fiscal 2006 we recorded facility closure, employee restructuring, and asset impairment expenses of $3.5 million. In the Automotive Wheels segment we recorded expenses of $2.1 million, which consisted primarily of costs related to severance at our international wheel locations in Spain, Italy, and South Africa in addition to expenses related to the closure of our Huntington, Indiana facility. The Components segment recorded a $0.8 million charge primarily related to severance expense at the technical center in Ferndale, Michigan. The Other segment expense of $0.6 million represents severance at our corporate office.

contemplated by a purchase and sale agreement and we have commenced litigation seeking specific performance of the agreement and damages, which is currently subject to the automatic stay in our Chapter 11 proceeding. The remainder of the current quarter expense is related to continuing closure costs at our Huntington, Indiana and Ferndale, Michigan technical center facilities.

During the first quarter of fiscal 2008, we recorded facility closure, employee restructuring charges, and asset impairments of $3.3 million. Facility closure costs of $0.3 million were related to our idle facilities in Howell, Michigan and Huntington, Indiana. Asset impairments of $2.7 million were related to our aluminum wheel facilities in Howell, Michigan; Hoboken, Belgium, which was sold during the second quarter of fiscal 2008; and Chihuahua, Mexico. Severance and other restructuring costs of $0.1 million were related to our aluminum wheel facility in Dello, Italy. Expense of $0.2 million in the Other segment consists of $0.1 million for facility closure cost and severance of $0.1 million for our Ferndale, Michigan technical center, which was closed in fiscal 2007.

Other income, net

Other income, net decreased from the prior year by $2.4 million from $3.4 million during the first quarter of fiscal 2008 to $1.0 million during the first quarter of fiscal 2009. The decrease in income is primarily attributable to realized foreign currency exchange losses. The items recorded to other income includes license and royalty income, gains or losses on tooling sales, realized exchange gains or losses, export incentives, and other miscellaneous items that are not considered part of cost of goods sold. None of these items individually or in the aggregate were considered material.

Interest expense, net

Interest expense increased $18.47 million to $1822.30 million for the first quarter of fiscal ~~2007 from~~2009 from $1613.93 million for the first quarter of fiscal ~~2006~~2008. ~~The~~Due to the violation of our debt ~~increase~~covenants as of April 30, 2009, we expensed the remainder of our unamortized debt costs of approximately $9 million to interest expense for the quarter ended April 30, 2009. Partially offsetting the unamortized debt expense was ~~driven~~$3.5 million ~~primarily~~of byinterest ~~higher~~income ~~short~~due to the mark-~~term~~to-market and fair value adjustments recorded for our interest rate swaps. The remainder of ~~rates~~the variance is due to higher interest expense due to the January 30, 2009 credit amendment.

Other non-operating (income) expense ~~Income taxes~~

~~Income~~ During ~~tax~~the ~~expense~~first ~~was~~quarter of fiscal 2009 we recognized $82.63 million ~~for~~of ~~the~~other ~~first quarter~~non-operating ofincome ~~fiscal~~as ~~2007~~ compared to ~~expense of~~ $51.57 million ~~for~~of ~~the first~~expense ~~quarter~~in ofthe ~~fiscal~~prior ~~2006~~year. The ~~income~~expense ~~tax~~for ~~rate~~the ~~varies~~first ~~from~~quarter ~~the~~of ~~United~~fiscal ~~States~~2009 ~~statutory~~includes ~~income~~a ~~tax~~$1.3 million ~~rate~~decrease ofin ~~35%~~the ~~due~~liability ~~primarily to~~recognized ~~losses~~for ina ~~the~~put ~~United~~option agreement ~~States~~with ~~without~~the ~~recognition~~minority ofshareholders ~~a corresponding~~at ~~income~~our ~~tax benefit~~Kalyani, asIndia ~~well~~joint venture, as ~~effective~~compared ~~income~~to an ~~tax~~increase ~~rates~~ in ~~certain~~the ~~foreign~~liability ~~jurisdictions~~of ~~that~~$1.6 million ~~are~~in ~~lower than~~ the ~~United~~previous ~~States~~year. ~~statutory~~The ~~rates.~~remainder ~~Accordingly,~~of ~~our~~the ~~worldwide~~(income) ~~tax~~ expense ~~may~~in ~~not~~both ~~bear~~years ais ~~normal~~related ~~relationship~~ to ~~earnings before~~realized ~~taxes~~foreign oncurrency ~~income~~exchange (gains) losses.

Income tax (benefit) expense ~~Discontinued operations~~

In Income tax benefit was $1.6 million for the first quarter of fiscal ~~2007~~2009 wecompared ~~sold~~to ~~our suspension~~expense ~~facilities~~of in$13.0 million ~~Bristol,~~for ~~Indiana~~the ~~and~~first ~~Montague,~~quarter ~~Michigan~~of fiscal 2008. InThe ~~fiscal~~tax benefit in the current quarter ~~2006~~primarily werelates ~~sold~~to ~~our~~international ~~suspension~~tax ~~facility~~losses generated, which we expect to utilize in ~~Southfield,~~the ~~Michigan.~~future, ~~These~~partially ~~facilities~~offset ~~made~~by upwithholding ~~most~~tax ofexpense ~~our~~in ~~suspension~~the ~~components business~~US. ~~(Suspension~~The ~~business)~~tax ~~and~~expense ~~was~~recorded ~~part~~in ofthe ~~our~~prior ~~Components~~year ~~segment~~quarter relates to taxable income. The ~~Suspension~~income ~~business~~tax israte ~~accounted~~varies ~~for~~from ~~as discontinued~~the ~~operations~~United inStates ~~accordance~~statutory ~~with~~income tax ~~Statement~~rate of ~~Financial~~ ~~Accounting~~35% ~~Standard~~due ~~(SFAS)~~primarily ~~144,~~to ~~“Accounting~~losses ~~for~~ in the ~~Impairment~~United orStates ~~Disposal~~without recognition of ~~Long-Lived~~a ~~Assets.”~~corresponding ~~Accordingly~~income tax benefit, ~~the~~as ~~operating~~well ~~results~~as ofeffective ~~the~~income ~~business~~tax rates in certain foreign jurisdictions that are different than the ~~prior~~United States statutory rates. Accordingly, our worldwide tax expense may not ~~periods~~bear ~~were~~a ~~reclassified~~normal asrelationship ~~discontinued~~to ~~operations~~earnings before taxes on income.

Net loss

Due to the factors mentioned above, the net loss during the first quarter of fiscal ~~2007~~2009 was $1558.35 million as compared to ~~a net loss of~~ $1712.68 million in the first quarter of fiscal ~~2006~~ 2008.

29 27

Segment Results — Comparison of the Three Months Ended April 30, ~~2007~~2009 to the Three Months Ended April , 30, 2008 ~~2006~~

Automotive Wheels

The following table presents net sales, (loss) earnings from operations, and other information for the Automotive Wheels segment for the periods indicated (dollars in millions):

	Three Months			Three Months
	Three Months Ended April 30,
	Ended			Ended
	2009			2008		$ Change
	April 30,			April 30,
Net sales	$	247.1		$	562.0	$	(314.9	)
	2007			2006		$ Change
Asset impairments and other restructuring charges:
Net sales	$	466.8		$	403.8	$	63.0
Facility closure costs	$	0.6		$	0.3	$	0.3
Asset impairments and other restructuring charges:
Impairment of facility, machinery, and equipment		0.6			2.7		(2.1	)
Facility closure costs	$	2.1		$	0.4	$	1.7
Severance and other restructuring costs		2.4			0.1		2.3
Impairment of facility, machinery, and equipment		0.2			0.2		—
Total asset impairments and other restructuring charges	$	3.6		$	3.1	$	0.5
Severance and other restructuring costs		—			1.5		(1.5	)
(Loss) earnings from operations	$	(30.2	)	$	16.8	$	(47.0	)
Total asset impairments and other restructuring charges	$	2.3		$	2.1	$	0.2
Earnings from operations	$	24.5		$	13.5	$	11.0

Net sales

Net sales from our Automotive Wheels segment ~~rose~~ decreased $63314.09 million ~~or 15.6%~~ to $~~466~~247.81 million in during the first quarter of fiscal ~~2007~~2009 from $~~403~~562.80 million during the first quarter of fiscal ~~2006~~2008. Lower ~~Increased~~volumes ~~volume~~ and ~~favorable product~~ mix ~~increased~~decreased sales by $21264.3,4 million. ~~partially~~The ~~offset~~sale byof ~~decreased pricing.~~our ~~Increased~~Hoboken, ~~metal~~Belgium ~~pass-through~~facility during ~~pricing~~the ~~and~~second ~~favorable foreign~~quarter ~~exchange~~of ~~rate~~fiscal ~~fluctuations~~2008 ~~increased~~caused net sales to decrease by $2115.40 million. The remainder of the variance is primarily due to unfavorable foreign currency exchange rates relative to the US dollar as the Euro and ~~$23.7~~other currencies have declined during the quarter ended April ~~million~~30, 2009 ~~respectively~~as compared to the same period in the prior year.

Asset impairments and other restructuring charges

~~During~~ Asset impairment and restructuring charges were $0.5 million higher as compared to the ~~first~~prior year, ~~quarter~~up offrom ~~fiscal~~$3.1 million ~~2007~~for the quarter ended April 30, we2008 ~~recorded~~as ~~facility~~compared to $3.6 million for the ~~closure~~quarter ~~and~~ended ~~restructuring~~April 30, ~~charges~~2009. The current year expense of $2.3.6 million. ~~These principally~~was primarily related to ongoing facility closure costs atfor our ~~Huntington~~idle aluminum wheel facilities in Howell, Michigan; Huntington, Indiana; ~~aluminum~~and ~~wheel~~Gainesville, ~~facility~~Georgia; as well as ~~machinery~~severance and ~~equipment~~ ~~impairments~~other ~~recorded~~restructuring costs at our ~~Brazil~~facilities ~~aluminum~~in ~~wheel facility.~~Manresa, ~~During~~Spain; ~~the~~Chihuahua, ~~first~~Mexico; ~~quarter~~Königswinter, ofGermany; ~~fiscal~~Manisa, ~~2006~~Turkey; ~~we recorded~~and ~~facility closure~~Alrode, ~~employee~~South ~~restructuring~~Africa, ~~and~~in ~~asset~~order ~~impairment expenses~~to ofalign ~~$2.1 million.~~headcount ~~These~~with ~~consisted~~the ~~primarily~~lower ~~of costs~~sales ~~related~~volumes. toThe ~~severance~~prior toyear impairment ~~our~~and ~~international~~restructuring ~~wheel~~expense ~~locations in~~consisted ~~Spain,~~primarily ~~Italy,~~of ~~and~~asset ~~South Africa~~impairments inrelated ~~addition~~ to ~~expenses~~our ~~related~~aluminum towheel ~~the~~facilities ~~closure~~in ofGainesville, ~~our~~Georgia; ~~Huntington~~Hoboken, ~~Indiana~~Belgium; ~~facility~~and Chihuahua, Mexico.

~~Earnings~~ (Loss) earnings from operations

~~Earnings~~ We ~~from~~recorded ~~our~~a ~~Automotive~~loss ~~Wheels~~from ~~segment~~operations ~~increased~~ of $1130.02 million for the quarter ended April 30, 2009 as compared to earnings of $2416.58 million induring the ~~first~~same ~~quarter~~period of ~~fiscal~~ ~~2007~~time ~~from~~in the prior year. Gross profit was $1362.59 million lower, primarily due to the decrease in volumes as well as mix. Employee costs were approximately $3 million lower during the first quarter of 2009 as compared to the prior ~~fiscal~~year ~~2006.~~due ~~The~~to ~~increase~~reductions in ~~profitability~~personnel ~~was~~in ~~driven~~order to align headcount with the lower production volumes. Fluctuations in foreign currency exchange rates improved earnings from operations by ~~higher~~approximately ~~volumes~~$3 million. ~~and~~Changes ~~favorable~~in ~~product~~expenses ~~mix,~~allocated ~~higher~~from ~~metal~~the ~~pass-through~~corporate offices decreased expenses by $3 ~~pricing,~~million. ~~improved~~The ~~operational~~remainder ~~efficiencies,~~of ~~and~~the ~~lower~~variance is primarily due to decreased controllable expenses as a ~~depreciation~~result ~~costs~~of cost savings initiatives.

Components

The following table presents net sales, earnings (loss) from operations, and other information for the Components segment for periods indicated (dollars in millions):

	Three Months		Three Months
	Ended		Ended
	April 30,		April 30,
	2007		2006			$ Change
Net sales	$	94.2	$	99.7		$	(5.5	)
Asset impairments and other restructuring charges:
Impairment of facility, machinery, equipment, and intangibles	$	—	$	—		$	—
Severance and other restructuring costs		—		0.8			(0.8	)
Total asset impairments and other restructuring charges	$	—	$	0.8		$	(0.8	)
Earnings (loss) from operations	$	0.4	$	(1.2	)	$	1.6

Net sales

Net sales from our Components segment fell $5.5 million or 5.4% to $94.2 million in the first quarter of fiscal 2007 from $99.7 million during the first quarter of fiscal 2006. Lower volume decreased sales $14 million. Higher metal pass-through pricing and favorable product mix increased sales $4 million. Favorable foreign exchange rate fluctuations and higher pricing increased sales $5 million.

Asset impairments and other restructuring charges

During the first quarter of fiscal 2006 our Components segment reported a $0.8 million charge primarily related to severance expense at the technical center in Ferndale, Michigan, which was closed during fiscal 2006.

Loss from operations

Our Components segment had income from operations of $0.4 million for the first quarter of fiscal 2007 compared to a loss from operations of $1.2 million in the first quarter of fiscal 2006. This $1.6 million improvement was primarily due to higher pricing, lower depreciation, and lower wages and benefits, partially offset by lower volume and unfavorable product mix.

Other

The following table presents net sales, total asset impairments and other restructuring charges, and (loss) earnings from operations for the Other segment for the periods indicated (dollars in millions):

	Three Months			Three Months
	Three Months Ended April 30,
	Ended			Ended
	2009			2008			$ Change
	April 30,			April 30,
Net sales	$	11.1		$	11.8		$	(0.7	)
	2007			2006			$ Change
Total asset impairments and other restructuring charges		0.6			0.2			0.4
Loss from operations	$	(4.8	)	$	(4.9	)	$	0.1
(Loss) earnings from operations		(10.8	)		4.9			(15.7	)

~~Loss~~Net ~~from~~Sales ~~operations~~

~~Loss~~ Net ~~from~~sales ~~operations~~decreased inby ~~the~~$0.7 million ~~first~~from ~~quarter of fiscal 2007 was~~ $411.8 million ~~compared~~during tothe afirst ~~loss~~quarter of fiscal 2008 to $411.91 million during the first quarter of fiscal ~~2006~~2009. ~~This~~The ~~improvement~~decrease ~~was~~is primarily ~~due~~ related to lower ~~decreases~~prototype insales ~~wage~~as ~~and~~compared ~~benefit~~to ~~costs and reduction in~~ the ~~use~~ ofprior ~~outside services~~year.

30 29

Asset impairments and other restructuring charges

Asset impairment and restructuring charges were $0.4 million higher as compared to the prior year, up from $0.2 million for the quarter ended April 30, 2008 as compared to $0.6 million for the quarter ended April 30, 2009. The current year expense relates to severance expense due to headcount reductions at our Nuevo Laredo, Mexico facility. The prior year expense consisted of $0.1 million of continuing facility closure costs at our Ferndale, Michigan technical center, which was closed in fiscal 2007, and $0.1 million of severance expense at our corporate offices due to headcount reductions.

(Loss) earnings from operations

We recorded a loss from operations in the first quarter of fiscal 2009 of $10.8 million compared to earnings of $4.9 million during the first quarter of fiscal 2008. Higher professional service fees related to our ongoing restructuring increased expenses during the first quarter of fiscal 2008 by $8.9 million. Royalty and trademark fee income was $3.9 million lower due to the decrease in sales volumes. Changes in expenses allocated to the Automotive Wheels segment increased expenses by $3 million.

Liquidity and Capital Resources

Cash Flows

Operating Activities: Cash provided by operations was $14.9 million in the first three months of fiscal 2007 compared to $36.8 million in the first three months of fiscal 2006. The $21.9 million decrease was primarily due to a one time change in customer terms in the first quarter of fiscal 2006.

Investing Activities: Cash used for investing activities was $16.6 million during the first three months of fiscal 2007 compared to $10.3 million in the first three months of fiscal 2006. This increase was primarily due to higher capital expenditures, mostly for additional machinery and equipment to improve productivity, reduce costs, meet demand for new vehicle platforms, and meet expected requirements for our products.

Financing Activities: Cash provided by financing activities was $2.3 million in the first three months of fiscal 2007 compared to cash used for financing activities of $4.7 million in the first three months of fiscal 2006. This increase is primarily due to the conversion of some of our Senior Notes to our common stock in the first quarter of 2007 and payment of bank finance fees in the first quarter of 2006.

Sources of Liquidity

The principal sources of liquidity for our ~~future~~ operating, capital expenditure, facility closure, restructuring, and reorganization requirements during the Chapter 11 proceedings are expected to be (i) ~~cash flows~~proceeds ~~from~~of ~~continuing~~the ~~operations~~New Money DIP Loans, (ii) ~~proceeds~~cash flows from ~~the sale~~continuing ~~of non-core assets and businesses~~operations, (iii) cash and ~~cash~~ cash equivalents on hand, and (iv) proceeds related to our international trade receivable ~~securitization and~~ financing ~~programs,~~ (v) borrowings from our new credit facilities, (vi) proceeds from sale of euro denominated senior unsecured notes, and (vii) proceeds from the sale of common stock in our rights offering (Rights Offering)programs. ~~For a more~~ detailed description of the transactions described in (v), (vi), and (vii) see Note 16, Subsequent events. While we expect that such sources will meet these requirements, there can be no assurances that such sources will prove to be sufficient, in part, due to inherent uncertainties about applicable future business and capital market conditions.

On We ~~March 16,~~will ~~2007~~need weto ~~announced~~obtain ~~that~~additional ~~our~~financing ~~Board~~in oforder ~~Directors approved a Rights Offering (Rights Offering) of up~~ to ~~$180 million~~ ofemerge ~~common~~from ~~stock to~~ our ~~stockholders~~Chapter 11 ~~at a~~bankruptcy ~~subscription price of $3~~proceedings.25 ~~per~~There ~~share.~~can ~~The~~be ~~Rights~~no ~~Offering,~~assurance ~~as well~~that assuch afinancing ~~direct~~will ~~investment~~be ~~option~~available ofon ~~$13.1 million~~acceptable byterms ~~Deutsche~~or ~~Bank~~at ~~Securities, Inc~~all. ~~was~~If ~~approved~~we atare aunable ~~special~~to ~~meeting of~~obtain ~~stockholders~~additional ~~held on May 4~~financing, ~~2007. On May 30, 2007~~ we ~~closed~~would onunlikely ~~the~~be ~~Rights~~able ~~Offering and direct investment option.~~to ~~Net~~successfully ~~proceeds,~~complete ~~after~~our ~~fees~~restructuring and ~~expenses,~~continue ~~were~~as ~~used~~a togoing ~~repurchase the outstanding 101/2% Senior Notes due 2010~~concern.

On The ~~May 30,~~filing ~~2007 we closed on new senior secured credit facilities in an amount~~ of ~~approximately~~our ~~$495~~Chapter ~~million.~~11 ~~The new~~petitions ~~credit~~constituted ~~facilities~~an ~~consist~~event of adefault ~~term~~under ~~loan~~our ~~facility of~~Pre-petition ~~€260 million~~Credit ~~maturing~~Facilities inand ~~2014;~~Senior aNotes ~~revolving~~and ~~credit facility~~the ofobligations ~~$125 million~~under ~~maturing~~those indebt ~~2013~~instruments ~~available to HLI~~became ~~OpCo~~automatically and ~~their~~immediately ~~European~~due ~~subsidiary;~~ and apayable, ~~synthetic~~subject ~~letter~~to ~~of credit~~an ~~facility~~automatic stay of ~~€15 million.~~any ~~The~~action ~~proceeds from the~~to ~~new credit facilities~~collect, ~~together with the proceeds of other financing activities~~assert, ~~were~~or ~~used~~recover toa ~~refinance~~claim ~~our~~against ~~obligations under~~the ~~our~~Debtors ~~Amended~~ and ~~Restated~~the ~~Credit~~application ~~Agreement~~of ~~dated~~applicable ~~April 11,~~bankruptcy ~~2005~~law. ~~Additional~~The ~~proceeds~~filing ~~will be used to replace existing letters~~ of ~~credit~~the ~~and~~Chapter 11 topetitions ~~provide~~was ~~for~~also ~~working~~an ~~capital and~~event ~~other~~of ~~general~~termination ~~corporate~~under ~~purposes, and to pay the fees and~~our ~~expenses~~domestic ~~associated~~accounts ~~with~~receivable ~~the new credit facilities~~program.

On ~~May~~June 3015, ~~2007~~2009, wethe ~~closed~~Bankruptcy onCourt issued a ~~new~~final ~~senior~~order ~~unsecured~~approving ~~note~~the DIP Credit ~~offering~~Agreement. ofThe ~~€130 million~~DIP ~~issued~~Credit byAgreement aprovides ~~European~~for an aggregate commitment for New Money DIP Loans of ~~subsidiary~~up to $100 million. The ~~notes~~proceeds ~~mature~~of the New Money DIP Loans are deposited in ~~2015~~depositary accounts and ~~contain~~can ~~customary covenants~~be withdrawn no more than twice per week and ~~restrictions~~then only to the extent needed to pay permitted expenses payable in the five business days following each withdrawal in accordance with budgets approved in the sole discretion of the lenders under the DIP Credit Agreement. ~~The~~There ~~proceeds~~can be ~~from~~no assurance that the ~~New~~amounts ~~Senior~~of cash from operations and amounts made available under our DIP ~~Notes~~Credit ~~were~~Agreement ~~used~~will be sufficient to ~~refinance~~fund our ~~obligations~~operations. In the event that cash flows and available borrowings under the DIP Credit Agreement are not sufficient to meet our ~~Amended~~liquidity requirements, our operations would be adversely affected and ~~Restated~~we may not be able to continue as a going concern. For additional information on the DIP Credit Agreement, ~~dated~~see ~~April~~Executive Summary and Chapter 11, ~~2005~~Matters—Chapter 11 Financing.

~~Other Liquidity~~Capital ~~Matters~~Resources

We ~~have~~had a ~~$45 million~~ domestic accounts receivable securitization facility. Aswith ofan interest rate equal to LIBOR plus 2.25% at April 30, ~~2007~~2009. ~~and~~The facility limit was reduced to $5.0 million ~~January~~in April ~~31,~~2009 ~~2007,~~and ano ~~total~~additional advances were made under the program beyond the $5.0 million advanced. The facility was terminated upon our filing of Chapter 11 bankruptcy proceedings in May 2009. There were $385.0 million and $376.0 million ~~was financed~~of borrowings under this program as of April 30 and January 31, 2009, respectively.

We have an accounts receivable financing program in Germany with a local financial institution. The program limit was €25 million as of April 30 and January 31, 2009. Borrowings under this program of approximately €12.3 million or $16.3 million and €19.7 million or $25.3 million at April 30, 2009 and January 31, 2009, respectively, are included in short term bank borrowings.

~~Table~~ We also have an accounts receivable factoring program in the Czech Republic with a local financial institution. The program limit is 480 million Czech Crown or approximately $24 million and $22 million as of ~~Contents~~April 30, 2009 and January 31, 2009, respectively.

During fiscal 2005 we established an accounts receivable financing program in Germany with a local financial institution. Borrowings under this program of $27 million and $25 million at April 30, 2007 and January 31, 2007, respectively, are included in short term bank borrowings.

In fiscal 2006 we established an accounts receivable factoring program in the Czech Republic with a local financial institution. The program limit is approximately $19 million. As of April 30, 2007 and January 31, 2007, a total of $15.7 million and $13 million, respectively, was factored under this program. The transactions are accounted for as sales of receivables under the provisions of Financial Accounting Standards Board (FASB) SFAS 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities” (SFAS 140) and the receivables are removed from the Consolidated Balance Sheets.

Credit Ratings

As of April 30, 2007 our credit ratings were as follows:

	S&P	Moody’s
Corporate rating	B−	Caa1
Bank debt rating	B−	B1
Senior Note rating	CCC	Caa2

The credit ratings on our new credit facilities and senior notes were as follows as of June 7, 2007:

	S&P	Moody’s	Fitch
Corporate rating	B	B3	B
Bank debt rating	BB−	B2	BB/RR1
New Senior Note rating	CCC+	Caa2	B-/RR5

Off Balance Sheet Arrangements

On December 9, 2004 we established an accounts receivable securitization facility in the U.S., which provided up to $75 million in funding from commercial paper conduits sponsored by commercial lenders. On May 30, 2006, we established a new $65 million accounts receivable securitization facility with commercial lenders in the U.S. that replaced the program established on December 9, 2004. The new program’s structure is similar to the program that was replaced. The new program was amended on February 23, 2007 to reduce the facility to $45 million. We have agreed with the lenders under the securitization facility to extend the term of the facility and decrease the effective borrowing rate. The facility will have an expiration date of May 30, 2013 and an interest rate based on LIBOR plus 2.25%. The actual amount of funding available at any given time is based on availability of eligible receivables and other customary factors.

Pursuant to the securitization facility, certain of our consolidated subsidiaries sell substantially all U.S. short term receivables to a non-consolidated special purpose entity (SPE I) at face value and no gains or losses are recognized in connection with the sales. The purchase price for the receivables sold to SPE I is paid in a combination of cash and short term notes. The short term notes appear in Other Receivables on our Consolidated Balance Sheets and represent the difference between the face amount of accounts receivables sold and the cash received for the sales. SPE I resells the receivables to a non-consolidated qualifying special purpose entity (SPE II) at an annualized discount of 2.4% to 4.4%. SPE II pays the purchase price for the receivables with cash received from borrowings and a short term note to SPE I for the excess of the purchase price of the receivables over the cash payment. SPE II pledges the receivables to secure borrowings from commercial lenders. This debt is not included in our consolidated financial statements.

Collections for the receivables are serviced by our subsidiary, HLI Operating Company (HLI Opco), and deposited into an account controlled by the program agent. The servicing fees payable to HLI Opco are set off against interest and other fees payable to the program agent and lenders. The program agent uses the proceeds to pay off the short term borrowings from commercial lenders and returns the excess collections to SPE II, which in turn pays down the short term note issued to SPE I. SPE I then pays down the short term notes issued to the consolidated subsidiaries.

~~The~~As ~~securitization~~of ~~transactions~~April 30, ~~are~~2009 ~~accounted for as sales of~~and ~~the~~January 31, ~~receivables~~2009, ~~under~~approximately ~~the~~240.8 million ~~provisions~~Czech ofCrown ~~SFAS~~or $11.9 ~~140~~million and ~~were~~246.4 million Czech ~~removed~~Crown ~~from~~or ~~the~~$11.4 million, ~~Consolidated~~respectively, ~~Balance~~was ~~Sheets~~factored under this program. The ~~proceeds received~~transactions are accounted ~~included~~for inas ~~cash~~sales ~~flows~~of ~~from~~receivables ~~operating~~under ~~activities in~~ the ~~Consolidated~~provisions ~~Statements~~ of ~~Cash~~SFAS ~~Flows.~~140, ~~Costs~~“Accounting ~~associated~~for ~~with~~Transfers ~~the~~and ~~receivables~~Servicing ~~facility~~of ~~are~~Financial ~~recorded~~Assets asand ~~other~~Extinguishments ~~expense~~of inLiabilities” (SFAS 140) and the ~~Consolidated~~receivables ~~Statements~~are ofremoved ~~Operations~~from the Consolidated Balance Sheets.

At April 30, 2007 and January 31, 2006 the outstanding balances of receivables sold to special purpose entities were $72 million and $80 million, respectively. Our net retained interests at April 30, 2007 and January 31, 2006 were $34 million and $43 million, respectively, which are disclosed as Other Receivables on the Consolidated Balance Sheets and in cash flows from operating activities in the Consolidated Statements of Cash Flows~~. Advances from lenders~~ ~~at April 30, 2007 and commercial paper conduits at January 31, 2006 were $38 million and $37 million, respectively.~~

Operating Activities: Cash used for operations was $33.1 million in the first three months of fiscal 2009 compared to $31.8 million in the first three months of fiscal 2008. The $1.3 million ~~Contractual~~increased use of cash is primarily due to lower profits offset by a decrease in working capital, both ~~Obligations~~attributable to lower sales volumes during the first quarter of fiscal 2009 as compared to the first quarter of fiscal 2008.

~~The~~ Investing ~~following~~Activities: ~~table~~Cash ~~identifies~~used ~~our~~for ~~significant~~investing ~~contractual~~activities was $2.3 million during the first ~~obligations~~three asmonths of ~~April~~fiscal 2009 compared to $18.7 30million in the first three months of fiscal 2008. The decreased use of cash was primarily due to lower capital expenditures for property, ~~2007~~plant, ~~(dollars~~and equipment, which declined from $19.2 million in ~~millions):~~the first quarter of fiscal 2008 to $2.5 million in the first quarter of fiscal 2009.

	Payment Due by Period
	Less than		2-3		4-5		After 5
	1 Year		Years		Years		Years		Total
Short-term borrowings	$	28.8	$	—	$	—	$	—	$	28.8
Long-term debt		4.5		334.8		308.0		—		647.3
Mortgage note payable		0.2		21.5		—		—		21.7
Capital lease obligation		0.7		—		—		—		0.7
Operating leases		6.2		6.9		0.7		0.2		14.0
Capital expenditures		22.8		—		—		—		22.8
United States pension contribution		11.5		16.5		14.7		—		42.7
Total obligations	$	74.7	$	379.7	$	323.4	$	0.2	$	778.0

Financing Activities: Cash used for financing activities was $15.8 million in the first three months of fiscal 2009 compared to $5.3 million in the first three months of fiscal 2008. During the first quarter of fiscal 2009, we reduced the outstanding balances of our short term debt borrowings from local banks at our international locations. Dividends paid to minority shareholders were also lower during the first quarter of fiscal 2009 as compared to fiscal 2008.

~~Other Cash~~Off ~~Requirements~~Balance Sheet Arrangements

We As ~~anticipate~~of ~~the~~April 30, ~~following~~2009, ~~approximate~~we ~~significant~~had ~~cash~~a domestic accounts receivable securitization facility with a ~~requirements~~program tolimit beof ~~paid~~$5 million ~~during~~as ~~the~~of ~~remainder~~April 30, 2009 and $25 million as of ~~fiscal~~January 31, ~~2007~~2009. The ~~(dollars~~facility had an interest rate equal to LIBOR plus 2.25%. This program was terminated in ~~millions):~~May 2009 as a result of our Chapter 11 filings.

Interest	$	42.2
Taxes		20.3
International pension and other post-retirement benefits funding		18.3
Restructuring costs		1.2

The securitization transactions are accounted for as sales of the receivables under the provisions of SFAS 140 and are removed from the Consolidated Balance Sheets. The proceeds received are included in cash flows from operating activities in the Consolidated Statements of Cash Flows. Costs associated with the receivables facility are recorded as other expense in the Consolidated Statements of Operations.

At April 30, 2009 and January 31, 2009 the outstanding balances of receivables sold to special purpose entities were $33.9 million and $21.4 million, respectively. Our net retained interests at ~~New~~April 30, 2009 and January 31, 2009 were $28.9 million and $15.4 million, respectively, which are ~~Accounting~~disclosed ~~Pronouncements~~as Other Receivables on the Consolidated Balance Sheets and in cash flows from operating activities in the Consolidated Statements of Cash Flows. There was $5.0 million and $6.0 million in advances from lenders at April 30, 2009 and January 31, 2009, respectively.

OnCredit ~~September 8, 2006 the FASB issued FSP AUG AIR-1~~Ratings Accounting for Planned Major Maintenance Activities. The FASB staff position defines three acceptable methods for major maintenance accounting, the direct expensing, built-in overhaul, and deferral methods, and prohibits the use of the accrual method. It also requires disclosure of the method used in addition to details on the impact on financials of any retrospective adjustments required. FSP AUG AIR-1 is effective for financial statements issues for fiscal years beginning after December 15, 2006. We have continued to use the direct expensing method of accounting for major maintenance, and no adjustments for prior periods were required.

In As ~~February~~of ~~2007 the FASB issued SFAS~~April ~~159~~30, ~~“The~~2009 ~~Fair Value~~our ~~Option~~credit ~~for~~ratings ~~Financial~~were Assets and Financial Liabilities — Including an amendment of FASB Statement No. 115” (SFAS 159). This standard permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. SFAS 159 is effective for us as of ~~February 1, 2008. Management is~~follows:


	S&P	Moody’s	Fitch
Corporate rating	CCC+	Caa3	C
Bank debt rating	B-	Caa2	CC/RR3
Senior Notes rating	CCC-	Ca	C/RR6

In May 2009 S&P downgraded our corporate rating from CCC+ to CC; bank debt rating from B- to CCC-; and Senior Notes rating from CCC- to C. After we filed for bankruptcy on May 11, 2009, S&P further downgraded our corporate rating from CC to D; bank debt rating from CCC- to D; and Senior Notes rating from C to D.

After we filed for bankruptcy on May 11, 2009, Moody downgraded our corporate rating from Caa3 to Ca; bank debt rating from Caa2 to Caa3; and Senior Notes rating from Ca to C.

~~assessing~~ After ~~the~~we ~~potential~~filed ~~impact~~for bankruptcy on May 11, 2009, Fitch downgraded our ~~financial~~corporate ~~condition~~rating orfrom C to ~~results~~D; ofbank ~~operations~~debt inrating ~~the~~from ~~event~~CC/RR3 weto ~~elect~~C/RR4; ~~the~~and ~~fair~~Senior ~~value option~~Notes affirmed at C/RR6.

InNew ~~September~~Accounting ~~2006 the FASB issued SFAS 157, “Fair~~Pronouncements Value Measurements” (SFAS 157). This standard defines fair value, establishes a framework for measuring fair value in conformity with U.S. generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 does not introduce new requirements for when fair value measures must be used, but focuses on how to measure fair value by establishing a fair value hierarchy to classify the sources of information used to measure fair value. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management is assessing the potential impact on present fair value measurement techniques, disclosures, and our financial position.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

In the normal course of business we are exposed to market risks arising from changes in foreign exchange rates, interest rates, raw material, and utility prices. We selectively use ~~derivative~~ derivative financial instruments to manage these risks, but do not enter into any derivative financial instruments for trading purposes. There have been no significant changes to our foreign exchange and commodities risks from those previously disclosed in our Form 10-K as filed with the Securities and Exchange Commission on May 11, 2009. Our interest rate risks as of April 30, 2009 have not changed significantly from those disclosed in our Form 10-K, although our interest rate swap agreements were terminated in May 2009 (see Note 13, Derivative Instruments and Hedging Activities in the notes to the consolidated financial statements included herein for additional detail on the termination of our interest rate swap agreements).

Item 4. Controls and Procedures ~~Foreign Exchange~~

We ~~have~~maintain ~~global~~a ~~operations~~disclosure ~~and~~committee ~~thus~~(the ~~make~~Disclosure ~~investments~~Committee) ~~and~~reporting ~~enter into~~to ~~transactions~~our inChief ~~various~~Executive Officer ~~foreign currencies. In order~~ to ~~minimize~~ assist the ~~risks~~Chief ~~associated~~Executive ~~with~~Officer ~~foreign~~and ~~currency fluctuations,~~Chief weFinancial ~~first~~Officer ~~seek~~in tofulfilling ~~internally~~their responsibility ~~net~~in ~~foreign~~designing, ~~exchange exposures~~establishing, maintaining, and ~~use~~reviewing ~~derivative~~our ~~financial~~Disclosure ~~instruments~~Controls ~~to hedge any~~and ~~remaining net exposure~~Procedures. WeThe ~~use~~Disclosure ~~forward~~Committee ~~foreign~~is ~~currency~~currently ~~exchange contracts~~chaired onby aour ~~limited~~Vice ~~basis~~President toand ~~reduce~~Chief Financial ~~the~~Officer ~~earnings~~ and ~~cash flow~~includes ~~impact~~our ofChief ~~non-functional~~Operating ~~currency~~Officer ~~denominated~~and ~~transactions. The~~President, ~~gains~~Global ~~and~~Wheel ~~losses~~Group; ~~from~~Vice President, ~~these~~General ~~hedging~~Counsel ~~instruments~~and ~~generally~~Secretary; ~~offset~~Director ~~the~~of ~~gains~~Compensation orand ~~losses~~Benefits; ~~from~~Treasurer; ~~the~~Assistant ~~hedged~~General ~~items~~Counsel; ~~and~~Director ~~are~~of ~~recognized~~Internal inAudit; ~~the~~Director ~~same~~of ~~period~~Tax; ~~the~~and ~~hedged~~Corporate ~~items~~Controller ~~are~~as ~~settled~~its other members.

The value of our consolidated assets and liabilities located outside the United States (translated at period end exchange rates) and income and expenses (translated using average rates prevailing during the period), generally denominated in the Euro, Czech Crown, and the Brazilian Real, are affected by the translation into our reporting currency (the U.S. Dollar). Such translation adjustments are reported as a separate component of stockholders’ equity. In future periods, foreign exchange rate fluctuations could have an increased impact on our reported results of operations. However, due to the self-sustaining nature of our foreign operations, we believe we can effectively manage the effect of these currency fluctuations. In addition, in order to further hedge against such currency rate fluctuations, we have, from time to time, entered into certain foreign currency swap arrangements. In January 2006 we entered into a foreign currency swap agreement in Euros with a total notional value of $50 million to hedge our net investment in certain of our foreign subsidiaries. During the first quarter of fiscal 2007, the foreign currency swap agreement was effective; prospectively, we expect the hedge to be ineffective due to the significant restructuring of our debt.

Interest Rates

We generally manage our risk associated with interest rate movements through the use of a combination of variable and fixed rate debt. We have from time to time entered into interest rate swap arrangements to further hedge against interest rate fluctuations. In January 2006 we entered into an interest rate swap agreement with a total notional value of $50 million to hedge the variability of interest payments associated with our variable-rate term debt. The swap agreement is expected to settle in January 2009. Since the interest rate swap hedges the variability of interest payments on variable rate debt with the same terms, it qualifies for cash flow hedge accounting treatment. At April 30, 2007 and January 31, 2007 approximately $458 million and $450 million, respectively, of our debt was variable rate debt after considering the impact of the swap. During the first quarter of fiscal 2007, the interest rate swap agreement was effective; prospectively, we expect the hedge to be ineffective due to the significant restructuring of our debt.

As of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer, along with the Disclosure Committee, evaluated the effectiveness of the design ~~Commodities~~and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of April 30, 2009 to ensure that information required to be disclosed by the Company in the reports that it files and submits under the Securities Exchange Act of 1934 is accumulated and submitted to the Company’s management as appropriate to allow timely decisions regarding required disclosure.

We rely on the supply of certain raw materials and other inputs in our production process, including aluminum, steel, and natural gas. We have entered into firm purchase commitments or other arrangements for substantially all of our aluminum and steel requirements for fiscal 2007. We manage the exposure associated with these commitments primarily through the terms of our supply and procurement contracts. Additionally, in accordance with industry practice, we generally pass through fluctuations in the price of aluminum to our customers. We have also been successful in negotiating with some of our customers to pass through a portion of fluctuations in the price of steel. We typically use forward-fixed contracts to hedge against changes in commodity prices for a majority of our outstanding purchase commitments. We also enter into forward purchase commitments for natural gas to mitigate market fluctuations in natural gas prices.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain a disclosure committee (the Disclosure Committee) reporting to our Chief Executive Officer to assist the Chief Executive Officer and Chief Financial Officer in fulfilling their responsibility in designing, establishing, maintaining, and reviewing our Disclosure Controls and Procedures. The Disclosure Committee is currently chaired by our Chief Financial Officer and includes our General Counsel; Director of Compensation and Benefits; Controller; Treasurer; Vice President of Global Materials and Logistics; Assistant General Counsel; Director of Internal Audit; and Vice President, Chief Operating Officer, and President of the Global Wheel Group as its other members.

As of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer, along with the Disclosure Committee, evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of April 30, 2007 to ensure that information required to be disclosed by the Company in the reports that it files and submits under the Securities Exchange Act of 1934 is accumulated and submitted to the Company’s management as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the first three months of fiscal 2007 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

In general, all pending litigation involving the Debtors was stayed upon the filing of our Chapter 11 proceedings and, absent further order of the Bankruptcy Court, no party, subject to certain exceptions, may take any action, also subject to certain exceptions, to recover on pre-petition claims against the Debtors. At this time, it is not possible to predict the outcome of the Chapter 11 cases or their effect on our business. There have been no ~~material~~other material developments to our legal proceedings since our Annual Report on Form 10-K filed on ~~April 9, 2007, except as disclosed on Form 8-K filed~~ May 2511, ~~2007~~2009.

Item 1A. Risk Factors

~~There~~ The ~~have been no material changes from the~~ risk factors as previously disclosed in our most recent Annual Report on Form 10-K. filed on May 11, 2009 are superseded in their entirety as set forth in this Quarterly Report on Form 10-Q:

Risks Related to our Bankruptcy Filings

We filed for protection under Chapter 11 of the Bankruptcy Code on May 11, 2009.

During our Chapter 11 proceedings, our operations, including our ability to execute our business plan, are subject to the risks and uncertainties associated with our bankruptcy. Risks and uncertainties associated with our Chapter 11 proceedings include the following:

	•		Actions and decisions of our creditors and other third parties with interests in our Chapter 11 proceedings, which may be inconsistent with our plans;

	•		Our ability to obtain court approval with respect to motions in the Chapter 11 proceedings made from time to time;

	•		Our ability to develop, prosecute, confirm, and consummate a plan of reorganization with respect to the Chapter 11 proceedings;

	•		Our ability to obtain and maintain commercially reasonable terms with vendors and service providers;

	•		Our ability to maintain contracts that are critical to our operations;

	•		Our ability to retain management and other key individuals; and

	•		Risks associated with third parties’ seeking and obtaining court approval to terminate or shorten the exclusivity period for us to propose and confirm a plan of reorganization, to appoint a trustee under Chapter 11, or to convert the cases into liquidations under Chapter 7 of the Bankruptcy Code.

These risks and uncertainties could affect our business and operations in various ways. For example, negative events or publicity associated with our Chapter 11 proceedings could adversely affect our sales and relationships with our customers, as well as with vendors and employees, which in turn could adversely affect our operations and financial condition, particularly if the Chapter 11 proceedings are protracted. Also, transactions outside the ordinary course of business are subject to the prior approval of the Bankruptcy Court, which may limit our ability to respond timely to certain events or take advantage of certain opportunities. In addition, in order to successfully emerge from our Chapter 11 proceedings, our senior management will be required to spend significant amounts of time developing a comprehensive plan of reorganization, instead of concentrating exclusively on our business operations. Further, we have made, and will continue to make, judgments as to whether we should limit investment in, exit, or dispose of certain businesses. Our Chapter 11 proceedings and development of a plan of reorganization may result in the sale or divestiture of

assets or businesses, but we can provide no assurance that we will be able to complete any sale or divestiture on acceptable terms or at all. Any decision by our management to further limit investment in, exit, or dispose of businesses may result in the recording of additional charges.

Because of the risks and uncertainties associated with our Chapter 11 proceedings, the ultimate impact that events that occur during these proceedings will have on our business, financial condition and results of operations cannot be accurately predicted or quantified. We cannot provide any assurance as to what values, if any, will be ascribed in our bankruptcy proceedings to our various pre-petition liabilities, common stock, and other securities. We believe that our currently outstanding common stock will have no value and will be cancelled under any plan of reorganization we may propose under Chapter 11. We also believe that the holders of our Senior Notes are unlikely to receive more than a de minimis distribution on account of their interests in the Senior Notes and that such interests could be cancelled under any plan of reorganization the Company may propose under Chapter 11.

Our liquidity position imposes significant challenges to our ability to continue our operations.

As global economic conditions have deteriorated since September 2008, we have experienced significant pressure on our business, including our liquidity position. Our Chapter 11 proceedings may increase this pressure. Because of the public disclosure of our liquidity constraints, our ability to maintain normal credit terms with our suppliers has become impaired. The terms of the trade credit we receive from suppliers has been reduced. If liquidity problems persist, our suppliers could refuse to provide key products and services in the future. Our financial condition and results of operations, in particular with regard to our potential failure to meet our debt obligations, may lead some customers to become reluctant to enter into long-term agreements with us. In addition to the cash requirements necessary to fund our continuing operations, we anticipate that we will incur significant professional fees and other restructuring costs in connection with the Chapter 11 proceedings and the restructuring of our business operations.

We are currently operating under the DIP Credit Agreement, which provides for an aggregate commitment for New Money DIP Loans of up to $100 million. The proceeds of the loans under the DIP Credit Agreement are deposited in depositary accounts and can be withdrawn no more than twice per week and then only to the extent needed to pay permitted expenses payable in the five business days following each withdrawal in accordance with budgets approved in the sole discretion of the lenders under the DIP Credit Agreement. There can be no assurance that the amounts of cash from operations and amounts made available under our DIP Credit Agreement will be sufficient to fund our operations. In the event that cash flows and available borrowings under the DIP Credit Agreement are not sufficient to meet our liquidity requirements, our operations would be adversely affected and we may not be able to continue as a going concern. For additional information on the DIP Credit Agreement, see Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary and Chapter 11 Matters—Chapter 11 Financing.

Our stock is no longer listed on a national securities exchange. It will likely be more difficult for stockholders and investors to sell our common stock or to obtain accurate quotations of the share price of our common stock.

Effective June 8, 2009, the NASDAQ Stock Market delisted our common stock from trading, and, as a result, stockholders and investors will likely find it more difficult to sell our common stock or to obtain an accurate quotation of the price of our common stock. We can provide no assurance that we will re-list our common stock on a national securities exchange or that the stock will continue to be traded on an over-the-counter market. As a result of the delisting of our common stock, our suppliers, customers, and employees may lose confidence in the Company, and institutional investors may lose interest in our common stock. We believe that our currently outstanding common stock will have no value and will be cancelled under any plan of reorganization we may propose under Chapter 11. The opportunity for any recovery by holders of our common stock under such reorganization plan is unlikely and our shares are likely to be cancelled without any compensation pursuant to such plan.

During the pendency of our Chapter 11 proceedings, our financial results may be unstable and may not reflect historical trends.

During the pendency of our Chapter 11 proceedings, our financial results may fluctuate as they reflect asset impairments, asset dispositions, restructuring activities, contract terminations and rejections, and claims assessments. As a result, our historical financial performance may not be indicative of our financial performance following the Petition Date. Further, we may sell or otherwise dispose of assets or businesses and liquidate or settle liabilities, with court approval, for amounts other than those reflected in our historical financial statements. Any such sale or disposition and any comprehensive restructuring plan could materially change the amounts and classifications reported in our historical consolidated financial statements, which do not give effect to any adjustments to the carrying value of assets or amounts of liabilities that might be necessary as a consequence of a comprehensive restructuring plan.

Any “ownership change” of the Company could limit our ability to use our net operating loss carryforwards.

Under United States federal income tax law, a corporation is generally permitted to deduct from taxable income in any year net operating losses carried forward from prior years. As of January 31, 2009, we had approximately $707.5 of federal and state net operating loss carryforwards. We expect to undergo an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986, as amended, during or as a result of our Chapter 11 proceedings. As a result, our ability to deduct net operating loss carryforwards could be subject to significant limitations.

Risks Related to our Business

Our business depends on the automotive industry, and reductions in the demand for new vehicles will adversely affect our business.

Most of our sales are to automotive and commercial vehicle original equipment manufacturers (OEMs). Therefore, our financial performance is subject to conditions in the automotive industry, which are cyclical and depend on conditions in the U.S. and global economies generally. In North America and elsewhere, the automotive industry is currently characterized by significant overcapacity, fierce competition, rapidly declining sales and production volumes, and high fixed costs. During the second half of fiscal 2008, the weakening of the U.S. and global economies and limited availability of commercial and consumer credit resulted in significant reductions in consumer and capital spending and in the demand for automobiles, light trucks, and commercial vehicles. These conditions have led to decreased production by our customers, which in turn has adversely affected our sales and financial performance during fiscal 2008 and the first quarter of fiscal 2009. Demand for new vehicles may be adversely affected by other factors that are beyond our control, such as interest rates, the availability of credit and levels of disposable income. Our sales are also affected by our customers’ inventory levels and production schedules. Because of the present uncertainty in the economy, some of our customers have been reducing their forecasts for new vehicle production in future periods and have announced significant production shut downs during the second and third quarters of fiscal 2009. Decreases in demand for new vehicles or in new vehicle production may have a significant negative impact on our business. Because we have high fixed production costs, relatively small declines in our customers’ production could significantly reduce our profitability. A prolonged downturn in the North American or European automotive industries or a significant change in product mix due to consumer demand, including as a result of our Chapter 11 proceedings, could require us to further slow production in, or shut down, plants or incur impairment charges.

We depend on a small number of significant customers.

We derived approximately 29% of our fiscal 2008 sales from direct sales to Ford and General Motors and their subsidiaries globally and 12% of our fiscal 2008 sales from sales to these OEM’s in the United States. In addition, our five largest customers (Ford, General Motors, Renault/Nissan, Daimler, and Toyota) and their subsidiaries accounted for approximately 54% of our global sales in fiscal 2008. We may not be able to maintain our current relationships with these customers or continue to supply them at current levels. Our filing for protection under Chapter 11 of the Bankruptcy Code and the associated risks and uncertainties of the Chapter 11 proceedings may affect our customers’ perception of our business and increase the possibility of our losing key customers. Our sales also depend on the particular vehicle platforms that include our products. If production of those vehicle platforms were to be decreased or discontinued, our sales would be reduced. The loss of a significant portion of sales to any of our significant customers could have a material adverse effect on our business. In addition, certain of our customers are currently facing significant financial challenges. General Motors and Chrysler have recently filed for bankruptcy protection and others may do so in the future. The bankruptcy filings could result in adverse changes in these customers’ production levels, pricing, and payment terms and could limit our ability to collect receivables, which could harm our business or results of operations.

Our customers’ cost cutting efforts and purchasing practices may adversely impact our business.

Our customers are continually seeking to lower their costs of manufacturing, particularly in light of their current financial challenges. These cost reductions may reduce the amount we receive for sales of our products and may include relocation of our customers’ operations to countries with lower production costs. Customers might find it less costly to manufacture themselves at relocated facilities or to rely on foreign suppliers with lower production costs, whether or not the customers’ production is relocated, either of which may have a significant negative impact on our business. Changes in our customers’ purchasing policies or payment practices could also have an adverse effect on our business.

We operate in the highly competitive automotive supply industry.

The automotive supply industry is highly competitive, both domestically and internationally, with a large number of suppliers competing to provide products to a relatively small number of OEMs. Competition is based primarily on price, quality, timely delivery, and overall customer service. Many of our competitors are larger and have greater financial and other resources than we do. Further consolidation in the industry may result in fewer, larger suppliers who benefit from purchasing and distribution economies of scale. We may not be able to compete successfully with these or other companies. In addition, there is a trend toward OEMs expanding their business relationships with a smaller number of “preferred” suppliers. If we are not designated as a preferred supplier, we could lose sales to competitors that are preferred suppliers.

Furthermore, the rapidly evolving nature of the automotive industry may attract new entrants, particularly in low cost countries such as China. We may not be able to offer our products at prices competitive with those of competitors in low-cost countries and pricing pressure created by such competitors could reduce our sales and margins. These factors have led to a re-sourcing of certain future business to foreign competitors in the past and may continue to do so in the future. In addition, any of our competitors may develop superior products, produce similar products at a lower cost than we do, or adapt more quickly to new technologies or evolving customer requirements. As a result, our products may not be able to compete successfully.

A number of our competitors have been forced to seek bankruptcy protection partially as a result of highly competitive market conditions in our industry. In addition, our filing for protection under Chapter 11 of the Bankruptcy Code and the associated risks and uncertainties of the Chapter 11 proceedings may be used by our competitors to attract our existing customers or may discourage our customers from purchasing products under long-term arrangements or designating us a “preferred” supplier.

We may be unable to maintain trade credit with our suppliers.

We currently maintain trade credit with certain of our key suppliers and utilize such credit to purchase significant amounts of raw material and other supplies with payment terms. As conditions in the automotive supply industry have become less favorable, credit insurance, which is used by suppliers to manage their payment risk in connection with providing payment terms, has become significantly more expensive or unavailable. As a result, key suppliers have been seeking to shorten trade credit terms, reduce credit limits or require cash in advance for payment. Because we have filed for protection under Chapter 11 of the Bankruptcy Code, our key suppliers may seek to further restrict or eliminate our ability to obtain trade credit, or they may require payment on more restricted terms. If a significant number of our key suppliers were to shorten or eliminate our trade credit, our inability to finance large purchases of key supplies and raw materials would increase our costs and negatively impact our liquidity and cash flow, which could have a material adverse effect on our business, results of operations, or financial condition and on our ability to emerge from the Chapter 11 proceedings.

Increased cost of supplies and raw materials could affect our financial health.

Our business is subject to the risk of price increases and periodic delays in the delivery of raw materials and supplies. The availability and price of these commodities are subject to market forces largely beyond our control. Fluctuations in prices or availability of these raw materials or supplies will affect our profitability and could have a material adverse effect on our business, results of operations, or financial condition. In addition, if any of our suppliers seek bankruptcy relief or otherwise cannot continue their business as anticipated, the availability or price of raw materials could be adversely affected.

In recent periods there has been significant volatility in the global prices of steel, aluminum, and natural gas, which have had an impact on our business. Continued volatility in the price of steel, aluminum, natural gas, or other key materials and supplies may have a material adverse effect on our business, results of operations, or financial condition. Although we have been able to pass some of the supply and raw material cost increases onto our customers in the past, current competitive and marketing pressures may prevent us from doing so in the future. In addition, our customers are not contractually obligated to accept certain of these price increases, and in light of current market conditions, they may be less likely to accept the increases than they have been in the past. Moreover, we sometimes use fixed-forward contracts to hedge against fluctuation in the prices of certain commodities, which could result in our paying greater than market prices for these commodities. Where we pass through the costs of raw materials to our customers, customer pricing will decrease as raw material market prices decrease, regardless of the cost of our fixed forward contracts. For example, we generally enter into fixed-forward contracts for aluminum based on volume projections from our customers that coincide with the applicable pass through pricing adjustment periods. In recent periods, customer volumes have decreased significantly relative to their projections while at the same time market prices for aluminum have fallen sharply. As a result, we have fixed-forward

contracts for aluminum based on projected volumes at prices that are well above current market levels, while the amount of the cost we can pass through to the customer has decreased to reflect the lower market cost. This potential inability to pass on price increases to our customers could adversely affect our operating margins and cash flow, and result in lower operating income and profitability.

The financial distress of our suppliers could harm our results of operations.

The conditions in the automotive industry have adversely affected our supplier base. Several large suppliers have filed for bankruptcy protection or ceased operations. Continued financial distress among our supply base could lead to commercial disputes, write offs and possibly supply chain interruptions. The continuation or worsening of conditions in the supply base could have a material adverse effect on our business, financial condition or results of operations.

We have significant international operations that subject us to risks not faced by domestic competitors.

Approximately 82% of our consolidated net sales in fiscal 2008 were from operations outside the United States. We expect sales from our international operations to continue to represent a substantial and growing portion of our business. Risks inherent in international operations include the following:

	•		agreements may be difficult to enforce and receivables difficult to collect through a foreign country’s legal system;

	•		foreign customers may have longer payment cycles;

	•		foreign countries may impose additional withholding taxes or otherwise tax our foreign income, impose tariffs or adopt other restrictions on foreign trade or investment, including foreign exchange controls;

	•		foreign laws or regulations may restrict our ability to repatriate cash from foreign operations;

	•		necessary export licenses or customs clearances may be difficult to obtain;

	•		intellectual property rights may be more difficult to enforce in foreign countries;

	•		political or economic conditions or exposure to local social unrest, including any resultant acts of war, terrorism or similar events in the countries in which we operate could have an adverse effect on our earnings from operations in those countries;

	•		unexpected adverse changes in foreign laws or regulatory requirements may occur;

	•		compliance with a variety of foreign laws and regulations may be difficult;

	•		in certain countries we are subject to nationwide collective labor agreements that we did not negotiate;

	•		labor laws in certain countries may make it more difficult or expensive to reduce our labor force in response to reduced demand;

	•		differing foreign tax structures may subject us to additional taxes or affect our ability to repatriate cash from our foreign subsidiaries;

	•		fluctuations in exchange rates between the operating currencies of our international operations relative to the US dollar may adversely affect the value of our international assets and results of operations as reported in US dollars, as well as the comparability of period-to-period results of operations; and

	•		an inability to use the financing provided by the DIP Credit Agreement to fund our foreign operations could result in local insolvency proceedings in certain foreign jurisdictions.

Any of these factors could have a material adverse effect on our business, cash flows, financial condition, and results of operations.

Unexpected equipment failures, delays in deliveries, or catastrophic loss at any of our manufacturing facilities could lead to production curtailments or shutdowns.

Equipment failure, interruption of supply, labor disputes, or other causes could significantly reduce production of our products, which would reduce our sales and earnings for the affected period. In addition, we generally produce our products on a “just in time” basis and do not hold large inventories. If production is interrupted at any of our manufacturing facilities, even if only temporarily or as a result of events that are beyond our control, delivery times could be severely affected. Any significant delay in deliveries to our customers could lead to returns or cancellations and cause us to lose future sales, as well as expose us to claims for damages. Our manufacturing facilities are also subject to the risk of catastrophic loss due to unanticipated events such as fires, explosions, or violent weather conditions. We have in the past and may in the future experience plant shutdowns or periods of reduced production as a result of equipment failure, power outages, and delays in deliveries, or catastrophic loss, which could have a material adverse effect on our results of operations or financial condition.

We may not be able to successfully implement our planned operational improvements or realize the benefits of those plans already implemented.

As part of our ongoing focus on being a low-cost provider of high quality products, we continually analyze our business to further improve our operations and identify cost-cutting measures. If we do not identify and implement operational improvements or if implemented improvements do not generate the expected benefits, we may be unable to offer products at a competitive price and generate sufficient operating funds to service our debt or make necessary capital expenditures. If that were to happen, alternative sources of financing may not be available to us on commercially reasonable terms or at all, and our ability to emerge from the Chapter 11 proceedings could be materially and adversely affected.

We may not be able to timely or successfully launch new products.

In order to effectively compete in the automotive supply industry, we must be able to launch new products to meet our customers’ demand. As a result of our current liquidity condition and covenants limiting the amount of our capital expenditures, we may not be able to make the investments needed to launch production of new products. We may not be able to install and obtain customer approval of the equipment needed to produce products for new programs in time for the start of production. In addition, transitioning our manufacturing facilities and resources to full production under new product programs may impact production rates or other operational efficiency measures. Moreover, our customers may delay or cancel the launch of new product programs or actual production may be below planned quantities. Our failure to successfully launch new products, or a failure by our customers to successfully launch new programs in the quantities anticipated, could adversely affect our results.

Our success will depend on our ability to attract and retain qualified employees.

Our success will depend in part on our ability to attract, hire, train, and retain qualified engineering, managerial, technical, sales, and marketing personnel. We face significant competition for these types of employees. Our current financial condition and Chapter 11 proceedings create uncertainty that may lead to an increase in unwanted attrition and may affect our ability to attract and retain qualified new employees. Additionally, as conditions in the automotive industry decline and we implement measures to improve our cost structure, employee morale may suffer. We may be unsuccessful in attracting and retaining the personnel we require and key personnel may leave and compete against us. We may be unsuccessful in replacing key managers who either resign or retire. The loss of any member of our senior management team or other experienced, senior employees could impair our ability to execute our business plan and emerge from the Chapter 11 proceedings, cause us to lose customers and reduce our sales, or lead to the loss of other key employees. In any such event, our financial condition, results of operations, and cash flows could be adversely affected.

We might fail to adequately protect our intellectual property or third parties might assert that our technologies infringe on their intellectual property.

We rely on a combination of patents, trade secrets, trademarks and copyrights to protect our intellectual property, but this protection might be inadequate. For example, our pending or future patent applications might not be approved or, if allowed, they might not be of sufficient strength or scope. Conversely, third parties might assert that our technologies infringe their proprietary rights. We are currently involved in litigation in which the plaintiff has asserted that we have infringed on its patents. This litigation, and possible future litigation, could result in substantial costs and diversion of our efforts and could adversely affect our business, whether or not we are ultimately successful. For more information on this litigation, see the section entitled Legal Proceedings.

Our products may be rendered obsolete or less attractive by changes in regulatory requirements or competitive technologies.

Changes in legislative, regulatory or industry requirements or in competitive technologies may render certain of our products obsolete or less attractive. Our ability to anticipate changes in technology and regulatory standards and to successfully develop and introduce new and enhanced products on a timely basis will be a significant factor in our ability to remain competitive. Certain of our products may become obsolete and we may not be able to achieve the technological advances necessary for us to remain competitive. We are also subject to the risks generally associated with new product introductions and applications, including lack of market acceptance, delays in product development, and failure of products to operate properly.

A high percentage of our customers’ employees and certain of our employees are unionized or covered by collective bargaining agreements.

Many employees of our major customers and certain of our employees are unionized. Certain of our employees in the United States are represented by the United Steel Workers Union, all of whom are employed at our facility in Akron, Ohio. Our current contract with the United Steel Workers Union expires in fiscal 2010, and, as part of our Chapter 11 proceedings, we must determine whether to accept or reject this contract. As is common in Mexico and many European jurisdictions, substantially all of our employees in Europe and Mexico are covered by country-wide collective bargaining agreements, which are subject to negotiations on an annual basis. Although we believe that our relations with our employees are good, a dispute between us and our employees could have a material adverse effect on our business. In addition, significant percentages of the workforces at certain of our major customers and their suppliers are unionized. Strikes or labor disputes at a major customer or one of their key suppliers could result in reduced production of vehicles incorporating our products. This would reduce demand for our products and could have a material adverse effect on our sales and results of operations during the affected periods.

We are subject to potential exposure to environmental liabilities.

We are subject to various foreign, federal, state, and local environmental laws, ordinances, and regulations, including those governing discharges into the air and water, the storage, handling and disposal of solid and hazardous wastes, the remediation of contaminated soil and groundwater, and the health and safety of our employees. We are also required to obtain permits from governmental authorities for certain operations. We may not be in complete compliance with these permits at all times. If we fail to comply with these permits, we could be fined or otherwise sanctioned by regulators and the fine or sanction could be material. The nature of our operations and the history of industrial uses at some of our facilities expose us to the risk of environmental liabilities that could have a material adverse effect on our business. For example, we may be liable for the costs of removal or remediation of contamination that may be present on our property, even if we did not know about or cause the contamination and even if the practices that resulted in the contamination were legal when they occurred.

We may suffer future asset impairments and other restructuring charges, including write downs of intangible assets.

We record asset impairment losses when we determine that our estimates of the future undiscounted cash flows from an operation will not be sufficient to recover the carrying value of that facility’s building, fixed assets, and production tooling. During fiscal 2008 we recorded asset impairment losses, other restructuring charges, and facility exit costs of $22.2 million and goodwill and other intangible asset impairments of $238 million and we may incur significant similar losses and charges in the future. In connection with our emergence from Chapter 11 in 2003 and the application of fresh start accounting, we recorded significant increases in goodwill and intangible assets. At April 30, 2009 we had no goodwill and approximately $113.2 million of other intangible assets recorded on our consolidated balance sheets. We are required to evaluate annually whether our other intangible assets have been impaired or are not recoverable. Future market conditions may indicate that these assets are not recoverable based on changes in forecasts of future business performance and the estimated useful life of these assets, and this may trigger further write-downs of these assets. Any future write-off of a significant portion of our intangible assets would have an adverse effect on our financial condition and results of operations.

The nature of our business exposes us to product liability, recall, and warranty claims and other legal proceedings.

We are subject to litigation in the ordinary course of our business. The risk of product liability, recall, and warranty claims are inherent in the design, manufacture, and sale of automotive products, the failure of which could result in property damage, personal injury, or death. Although we currently maintain what we believe to be suitable and adequate product liability insurance, we may not be able to maintain this insurance on acceptable terms and this insurance may not provide adequate protection against potential liabilities. In addition, we may be required to participate in a recall involving our products. Such a recall would not be covered by our insurance. Furthermore, our customers can initiate a recall of our products without our agreement and offset their costs of the recall against payments due to us for other products. A successful product liability claim in excess of available insurance coverage or a requirement to participate in a product recall could have a material adverse effect on our business. In addition, we are involved in other legal proceedings, which could adversely affect our cash flows, financial condition, or results of operations.

Our pension and other postretirement employee benefits expense could materially increase.

Certain of our current and former employees participate in defined benefit pension plans. The plans are currently underfunded. Declines in interest rates or the market values of the securities held by the plans, or certain other changes, could materially increase the amount by which the plans are underfunded, affect the level and timing of required contributions, and significantly increase our pension expenses and reduce profitability. The values of the securities held by the plans has decreased significantly during the past fiscal year, significantly increasing the amount by which the plans are underfunded. We also sponsor other postretirement employee

benefit plans that cover certain current and former employees and eligible dependents. We fund these obligations on a pay-as-you-go basis. Increases in the expected cost of the benefits, particularly health care, in excess of our assumptions could increase our actuarially determined liability and related expense along with future cash outlays.

Risks Related to Our Capital Structure

We have substantial levels of debt and debt service that will divert a significant amount of cash from our business operations.

We have substantial levels of debt, including debt under our Pre-petition Credit Facilities and Senior Notes, and we are no longer in compliance with the covenants of these debt instruments. As of April 30 and January 31, 2009, we had approximately $715.4 million and $731.5 million of total indebtedness and approximately $56.7 million and $107.5 million of cash and cash equivalents, respectively. The filing of our Chapter 11 petitions constituted an event of default under our Pre-petition Credit Agreement and the Senior Notes, and those debt obligations became automatically and immediately due and payable, subject to an automatic stay of any action to collect, assert, or recover a claim against the Debtors and the application of applicable bankruptcy law. In addition to the debt under our Pre-petition Credit Agreement and under the Senior Notes, we may incur up to $200 million of additional debt under the DIP Loans, and we may incur significant additional debt in the future, including financing required to develop a plan of reorganization and successfully emerge from the Chapter 11 proceedings. The degree to which we will be leveraged could have important consequences, including:

	•		requiring a substantial portion of our cash flow from operations to be dedicated to debt service and therefore not available for our operations, capital expenditures, and future business opportunities;

	•		increasing our vulnerability to a downturn in general economic conditions or in our business;

	•		limiting our ability to adjust to changing market conditions, placing us at a competitive disadvantage compared to our competitors that have relatively less debt; and

	•		limiting our ability to obtain additional financing or access additional funds under the DIP New Credit Agreement for capital expenditures, working capital, or general corporate purposes.

We are currently operating under the DIP Credit Agreement, which provides up to $100 million of New Money DIP ALoans. The DIP Credit Agreement contains certain highly restrictive covenants that require us, among other things, to maintain our corporate existence, make certain payments, perform our obligations under existing agreements, purchase insurance, and provide financial records. The DIP Credit Agreement also limits or prohibits our ability to make capital expenditures, incur indebtedness, make prepayments on or purchase indebtedness in whole or in part, pay dividends, make investments, lease properties, create liens, consolidate or merge with another entity (or allow one of our subsidiaries to do so), sell assets, and acquire facilities or other businesses. The DIP Credit Agreement also requires us to maintain minimum net cash flow after restructuring expenses, EBITDA, interest coverage ratios, and liquidity. There can be no assurance that we will be able to comply with these and other covenants in our DIP Credit Agreement.

The proceeds of the New Money DIP Loan are deposited in depositary accounts and can be withdrawn no more than twice per week and then only to the extent needed to pay permitted expenses payable in the five business days following each withdrawal in accordance with budgets approved in the sole discretion of the DIP lenders. The DIP Credit Agreement also contains numerous events of default, many of which may be triggered by circumstances beyond our ability to control. If we were to default on the DIP Credit Agreement, all amounts due thereunder including the New Money DIP Loans and the Roll-up Loans could become immediately due and payable. In that event, if we were not able to obtain alternative financing to repay the indebtedness outstanding under the DIP Credit Agreement, we may be forced to discontinue operations and liquidate the Company.

We may not be able to fund required capital expenditures, and for that and other reasons we may need additional financing in the future, which we may be unable to obtain.

Our business requires us to make significant capital expenditures to acquire equipment needed to produce products for new customer programs, maintain existing equipment, and implement technologies to reduce production costs in response to customer pricing pressure. In addition, lower sales or unanticipated expenses could give rise to additional financing requirements. We may not generate sufficient cash flow from operations to fund our capital expenditure requirements. In that event, we may need to obtain additional financing or take other steps to reduce expenses or generate cash. There can, however, be no assurance that additional financing will be available or, if it is available, that it will be offered on acceptable terms. Any additional financing would require the consent of the DIP lenders, which we may not be able to obtain. We may be unable to obtain financing on favorable terms, or at all. If adequate funds are not available on acceptable terms, we may be required to make significant reductions in expenses and capital

expenditures, which could significantly restrict our operations and limit our ability to enhance our products, fund capital investments, respond to competitive pressures, or take advantage of business opportunities. As a result of our filing for protection under Chapter 11 of the Bankruptcy Code, our access to additional financing is, and for the foreseeable future will likely continue to be, very limited. Our long-term liquidity requirements and the adequacy of our capital resources are difficult to predict at this time and ultimately cannot be determined until a plan of reorganization has been developed and is confirmed by the Bankruptcy Court.

Our exposure to variable interest rates and foreign currency fluctuations may negatively affect our results.

A portion of our debt, including our borrowings under our Pre-petition Credit Facilities and the DIP Credit Agreement, bears interest at variable rates. Any increase in the interest rates will increase our expenses and reduce funds available for our operations and future business opportunities. Increases in interest rates will also increase the risks resulting from our significant debt levels. Due to the increase in our operations outside the United States, we have experienced increased foreign currency exchange gains and losses in the ordinary course of our business. Fluctuations in exchange rates may have a material impact on our financial condition, since Euro-denominated debt is converted into US dollars for financial reporting, and cash flows generated in other currencies will be used, in part, to service the dollar-denominated portion of our debt. This fluctuation could result in an increase in our overall leverage and could result in less cash flow available for our operations, capital expenditures, and repayment of our obligations. In addition, fluctuations in foreign currency exchange rates may affect the value of our foreign assets as reported in US dollars and may adversely affect reported earnings and, accordingly, the comparability of period-to-period results of operations. Changes in currency exchange rates may affect the relative prices at which we and foreign competitors sell products in the same market. In addition, changes in the value of the relevant currencies may affect the cost of certain items required in our operations. Although we attempt to hedge against fluctuations in interest rates or exchange rates, such fluctuations may have a material adverse effect on our financial condition or results of operations, or cause significant fluctuations in quarterly and annual results.

Our credit rating may be downgraded in the future.

Our debt is rated by nationally recognized statistical rating organizations. Our debt ratings were recently downgraded and, as a result of our filing for protection under Chapter 11 of the Bankruptcy Code, such ratings may be further downgraded in the future. While these actions do not affect our current cost of borrowing, they could significantly affect our ability to obtain or maintain trade credit with suppliers, reduce our access to the debt markets and increase the cost of incurring additional debt. There can be no assurance that we will be able to maintain our current credit ratings. Should we be unable to maintain our current credit ratings, we could experience a reduction in credit terms, an increase in our borrowing costs or difficulty accessing capital markets. Such a development could adversely affect our financial condition and results of operations.

Item 2. Changes in Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

The Company has defaulted on the Pre-petition Credit Facilities, which consist of the Term ~~None~~Loan with a principal balance of €254.8 million, the Revolving Credit Facility with a principal balance of $125 million and a €15 million synthetic letter of credit facility. The defaults resulted from our failure to comply with the financial covenants of the Pre-petition Credit Facilities for the period ending April 30, 2009 and the filing of the Chapter 11 proceedings.

The Company has also defaulted on the Senior Notes, which have a principal balance of €130 million. The defaults resulted from the filing of the Chapter 11 proceedings, and the failure to 34make the payment of interest due June 15, 2009.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

	10	.23	Stock Purchase Agreement among HLI Operating Company, Inc., HLI Suspension Holding Company, Inc. and Diversified Machine, Inc. dated February 1, 2007.*
10.17		Amendment No. 2, dated as of May 12, 2009, to Second Amended and Restated Credit Agreement, dated as of May 30, 2007, as amended by Amendment No. 1, dated as of January 30, 2009, by and among Hayes Lemmerz International, Inc., HLI Operating Company, Inc., Hayes Lemmerz Finance LLC—Luxembourg S.C.A., the Lenders named therein, Deutsche Bank AG, New York Branch, as DIP Administrative Agent, Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Joint Syndication Agents for the DIP Facilities, and Deutsche Bank Securities Inc., as Documentation Agent for the DIP Facilities (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K, filed on May 29, 2009).
	10	.24	Amended and Restated Equity Purchase and Commitment Agreement, dated as of April 16, 2007, by and between Hayes Lemmerz International, Inc. and Deutsche Bank Securities Inc. (incorporated by reference to Exhibit 99.2 to our Current Report on Form 8-K, filed April 18, 2007).
10.18		Second Amended and Restated Credit Agreement, dated as of May 30, 2007, as amended by Amendment No. 1, dated as of January 30, 2009, as further amended by Amendment No. 2, dated as of May 12, 2009, by and among HLI Operating Company, Inc., as U.S. Borrower, Hayes Lemmerz Finance LLC—Luxembourg S.C.A., as Luxembourg Borrower, Hayes Lemmerz International, Inc. and the other Debtors, each Lender party thereto, each DIP Lender named therein, Citicorp North America, Inc., as Pre-petition Administrative Agent, Deutsche Bank Trust Company Americas, as DIP Administrative Agent, Deutsche Bank Securities Inc., as Pre-petition Syndication Agent, Citicorp North America, Inc., as Pre-petition Documentation Agent, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as Joint Book-Running Lead Managers and Joint Lead Arrangers for the Pre-petition Facilities, and Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Syndication Agents (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K, filed on May 29, 2009).
	10	.25	Amended and Restated Registration Rights Agreement, dated as of April 16, 2007, by and between Hayes Lemmerz International, Inc., Deutsche Bank Securities Inc. and SPCP Group, LLC. (incorporated by reference to Exhibit 99.3 to our Current Report on Form 8-K, filed April 18, 2007).
10.19		Guaranty, dated as of May 12, 2009, by and between the Debtors named therein and Deutsche Bank AG, New York Branch, as DIP Administrative Agent (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K, filed on May 29, 2009).
	31	.1	Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
10.20		Depositary Agreement, dated as of May 12, 2009, by and among HLI Operating Company, Inc., as U.S. Borrower, Hayes Lemmerz Finance LLC—Luxembourg, S.C.A., as Luxembourg Borrower, Deutsche Bank AG, New York Branch, as DIP Administrative Agent, and Deutsche Bank Trust Company Americas, as Depositary (incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K, filed on May 29, 2009).
	31	.2	Certification of James A. Yost, Vice President, Finance, and Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
10.21		Amendment No. 3, dated as of May 19, 2009, to Second Amended and Restated Credit Agreement, dated as of May 30, 2007, as amended by Amendment No. 1, dated as of January 30, 2009, as further amended by Amendment No. 2, dated as of May 12, 2009, by and among Hayes Lemmerz International, Inc., HLI Operating Company, Inc., Hayes Lemmerz Finance LLC—Luxembourg S.C.A., the Lenders named therein, Deutsche Bank AG, New York Branch, as DIP Administrative Agent, Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Joint Syndication Agents for the DIP Facilities, and Deutsche Bank Securities Inc., as Documentation Agent for the DIP Facilities (incorporated by reference to Exhibit 10.5 to our Current Report on Form 8-K, filed on May 29, 2009).
	32	.1	Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
31.1		Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
	32	.2	Certification of James A. Yost, Vice President, Finance, and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
31.2		Certification Mark A. Brebberman, Vice President, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1		Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2		Certification of Mark A. Brebberman, Vice President, Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*


*		Filed electronically herewith.

43 35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~Hayes~~HAYES ~~Lemmerz International~~LEMMERZ INTERNATIONAL, ~~Inc~~INC. /s/ MARK A. BREBBERMAN Mark A. Brebberman Vice President and Chief Financial Officer

~~/s/ James A.~~June 19, ~~Yost~~2009

44 ~~James A. Yost~~

Vice President, Finance, and Chief Financial Officer

June 8, 2007

HAYES LEMMERZ INTERNATIONAL, INC.

10-Q EXHIBIT INDEX

	10	.23	Stock Purchase Agreement among HLI Operating Company, Inc., HLI Suspension Holding Company, Inc. and Diversified Machine, Inc. dated February 1, 2007.*
10.17		Amendment No. 2, dated as of May 12, 2009, to Second Amended and Restated Credit Agreement, dated as of May 30, 2007, as amended by Amendment No. 1, dated as of January 30, 2009, by and among Hayes Lemmerz International, Inc., HLI Operating Company, Inc., Hayes Lemmerz Finance LLC—Luxembourg S.C.A., the Lenders named therein, Deutsche Bank AG, New York Branch, as DIP Administrative Agent, Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Joint Syndication Agents for the DIP Facilities, and Deutsche Bank Securities Inc., as Documentation Agent for the DIP Facilities (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K, filed on May 29, 2009).
	10	.24	Amended and Restated Equity Purchase and Commitment Agreement, dated as of April 16, 2007, by and between Hayes Lemmerz International, Inc. and Deutsche Bank Securities Inc. (incorporated by reference to Exhibit 99.2 to our Current Report on Form 8-K, filed April 18, 2007).
10.18		Second Amended and Restated Credit Agreement, dated as of May 30, 2007, as amended by Amendment No. 1, dated as of January 30, 2009, as further amended by Amendment No. 2, dated as of May 12, 2009, by and among HLI Operating Company, Inc., as U.S. Borrower, Hayes Lemmerz Finance LLC—Luxembourg S.C.A., as Luxembourg Borrower, Hayes Lemmerz International, Inc. and the other Debtors, each Lender party thereto, each DIP Lender named therein, Citicorp North America, Inc., as Pre-petition Administrative Agent, Deutsche Bank Trust Company Americas, as DIP Administrative Agent, Deutsche Bank Securities Inc., as Pre-petition Syndication Agent, Citicorp North America, Inc., as Pre-petition Documentation Agent, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as Joint Book-Running Lead Managers and Joint Lead Arrangers for the Pre-petition Facilities, and Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Syndication Agents (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K, filed on May 29, 2009).
	10	.25	Amended and Restated Registration Rights Agreement, dated as of April 16, 2007, by and between Hayes Lemmerz International, Inc., Deutsche Bank Securities Inc. and SPCP Group, LLC. (incorporated by reference to Exhibit 99.3 to our Current Report on Form 8-K, filed April 18, 2007).
10.19		Guaranty, dated as of May 12, 2009, by and between the Debtors named therein and Deutsche Bank AG, New York Branch, as DIP Administrative Agent (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K, filed on May 29, 2009).
	31	.1	Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
10.20		Depositary Agreement, dated as of May 12, 2009, by and among HLI Operating Company, Inc., as U.S. Borrower, Hayes Lemmerz Finance LLC—Luxembourg, S.C.A., as Luxembourg Borrower, Deutsche Bank AG, New York Branch, as DIP Administrative Agent, and Deutsche Bank Trust Company Americas, as Depositary (incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K, filed on May 29, 2009).
	31	.2	Certification of James A. Yost, Vice President, Finance, and Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
10.21		Amendment No. 3, dated as of May 19, 2009, to Second Amended and Restated Credit Agreement, dated as of May 30, 2007, as amended by Amendment No. 1, dated as of January 30, 2009, as further amended by Amendment No. 2, dated as of May 12, 2009, by and among Hayes Lemmerz International, Inc., HLI Operating Company, Inc., Hayes Lemmerz Finance LLC—Luxembourg S.C.A., the Lenders named therein, Deutsche Bank AG, New York Branch, as DIP Administrative Agent, Deutsche Bank Securities Inc. and General Electric Capital Corporation, as Joint Book-Running Lead Managers, Joint Lead Arrangers, and Joint Syndication Agents for the DIP Facilities, and Deutsche Bank Securities Inc., as Documentation Agent for the DIP Facilities (incorporated by reference to Exhibit 10.5 to our Current Report on Form 8-K, filed on May 29, 2009).
	32	.1	Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
31.1		Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
	32	.2	Certification of James A. Yost, Vice President, Finance, and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
31.2		Certification Mark A. Brebberman, Vice President, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1		Certification of Curtis J. Clawson, Chairman of the Board, President, and Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2		Certification of Mark A. Brebberman, Vice President, Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*


*		Filed electronically herewith.

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Filing Compare · HAYES LEMMERZ INTERNATIONAL INC