1237941--5/11/2009--HAYES_LEMMERZ_INTERNATIONAL

related topics

{debt, indebtedness, cash}

{cost, operation, labor}

{product, market, service}

{cost, regulation, environmental}

{condition, economic, financial}

{competitive, industry, competition}

{customer, product, revenue}

{interest, director, officer}

{cost, contract, operation}

{property, intellectual, protect}

{operation, natural, condition}

{operation, international, foreign}

{personnel, key, retain}

{product, liability, claim}

{tax, income, asset}

{investment, property, distribution}

{capital, credit, financial}

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 expect to file for bankruptcy protection, and, if we do, our business and operations will be subject to various risks. During the pendency of any Chapter 11 proceedings, our financial results may be unstable and may not reflect historical trends. Risks Related to our Business and the Automotive Industry Our business depends on the automotive industry, and reductions in the demand for new vehicles will adversely affect our business. We depend on a small number of significant customers. Our customers cost cutting efforts and purchasing practices may adversely impact our business. We operate in the highly competitive automotive supply industry. We may be unable to maintain trade credit with our suppliers. Increased cost of supplies and raw materials could affect our financial health. The financial distress of our suppliers could harm our results of operations. We have significant international operations that subject us to risks not faced by domestic competitors. Unexpected equipment failures, delays in deliveries, or catastrophic loss at any of our manufacturing facilities could lead to production curtailments or shutdowns. We may not be able to successfully implement our planned operational improvements or realize the benefits of those plans already implemented. We may not be able to timely or successfully launch new products. Our success will depend on our ability to attract and retain qualified employees. We might fail to adequately protect our intellectual property or third parties might assert that our technologies infringe on their intellectual property. Our products may be rendered obsolete or less attractive by changes in regulatory requirements or competitive technologies. A high percentage of our customers employees and certain of our employees are unionized or covered by collective bargaining agreements. We are subject to potential exposure to environmental liabilities. We may suffer future asset impairments and other restructuring charges, including write downs of goodwill or intangible assets. The nature of our business exposes us to product liability, recall, and warranty claims and other legal proceedings. Our pension and other postretirement employee benefits expense could materially increase. Risks Related to Our Capital Structure We have substantial levels of debt and debt service that divert a significant amount of cash from our business operations. We may be unable to refinance, extend, or otherwise restructure our indebtedness. Restrictions and covenants in the indenture governing the Notes and the New Credit Facility limit our ability to take certain actions, and we may be unable to comply with these obligations. We do not generate sufficient cash flow to operate our business and fund required capital expenditures, and we will accordingly need additional financing in the future, which we may be unable to obtain.

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1237941--5/11/2009--HAYES_LEMMERZ_INTERNATIONAL_INC