Bankruptcy Court Holds Hearing On INTERMET Financing Commitment
July 18 2005 - 10:32AM
PR Newswire (US)
Bankruptcy Court Holds Hearing On INTERMET Financing Commitment
INTERMET Continues to Work on its Plan of Reorganization;
Disclosure Statement Hearing Scheduled for August 9th TROY, Mich.,
July 18 /PRNewswire-FirstCall/ -- INTERMET Corporation (INMTQ:PK),
a diversified manufacturer of cast-metal components, today
announced that its motion to enter into an equity financing
commitment letter, and to pay the fees and expenses and to furnish
related indemnities provided for in the commitment letter, was
denied by the Bankruptcy Court, with the right to resubmit the
motion at a later time. The Court reiterated that the Disclosure
Statement hearing would go forward as scheduled on August 9, 2005.
That hearing is the next step in the process to confirm the Plan of
Reorganization filed on June 24, 2005. INTERMET continues to work
toward confirmation of its Plan of Reorganization that will permit
the company to exit from Chapter 11. About INTERMET: With
headquarters in Troy, Michigan, INTERMET Corporation is a
manufacturer of cast-metal components for the automotive,
commercial- vehicle and industrial industries. The company has
approximately 5,300 employees worldwide. More information is
available on the Internet at http://www.intermet.com/ . Specific
information relating to the Chapter 11 cases filed by INTERMET and
certain of its domestic subsidiaries, including a copy of the
proposed Plan of Reorganization, can be found on the Internet at
http://www.administar.net/intermet . Cautionary Statement: This
news release includes forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. The word
"believe" and similar words and expressions identify
forward-looking statements. These statements are not guarantees of
future performance but instead involve various risks and
uncertainties. INTERMET's actual results may differ materially from
those suggested by its forward- looking statements due to factors
such as: the economic cost, management distraction and lost
business opportunities associated with bankruptcy proceedings;
INTERMET's continued access to its DIP financing; the high cost of
scrap steel and the possibility that scrap steel costs will remain
at high levels or continue to increase, which would have further
negative effects on INTERMET's profitability, cash flow, liquidity
and ability to borrow; fluctuations in the cost of other raw
materials, including the cost of energy, aluminum, zinc, magnesium
and alloys, and INTERMET's ability, if any, to pass those costs on
to its customers; pricing practices of INTERMET's customers,
including changes in their payment terms resulting from the
discontinuation of early payment programs and continuing demands
for price concessions as a condition to retaining current business
or obtaining new business, and the negative effect that price
concessions have on profit margins; changes in procurement
practices and policies of INTERMET's customers for automotive
components, including the risk of the loss of major customers or
the loss of current or prospective vehicle programs as a result of
INTERMET's financial condition and prospects (or otherwise);
possible inability to close unprofitable plants or to transfer work
from one plant to another because of the related costs or customer
requirements; general economic conditions, including any downturn
in the markets in which INTERMET operates; fluctuations in
automobile and light and heavy truck production, which directly
affect demand for INTERMET's products; deterioration in the market
share of any of INTERMET's major customers; fluctuations in foreign
currency exchange rates; work stoppages or other labor disputes
that could disrupt production at INTERMET's facilities or those of
its customers; continuing changes in environmental regulations to
which INTERMET is subject, and the costs INTERMET will incur in
meeting more stringent regulations; factors or presently unknown
circumstances that may result in impairment of INTERMET's assets,
including further write-downs of its goodwill; and other risks as
detailed from time to time in INTERMET's periodic SEC reports.
DATASOURCE: INTERMET Corporation CONTACT: Mike Kelly of INTERMET
Corporation, +1-248-952-2500 Web site: http://www.intermet.com/
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