INTERMET Receives Court Approval of Amended Contracts With Major Customers
January 14 2005 - 5:01PM
PR Newswire (US)
INTERMET Receives Court Approval of Amended Contracts With Major
Customers Company also agrees to amendment of DIP credit agreement
TROY, Mich., Jan. 14 /PRNewswire-FirstCall/ -- INTERMET Corporation
(INMTQ:PK) today announced that the U.S. Bankruptcy Court of the
Eastern District of Michigan entered an order approving INTERMET's
assumption of the amended agreements it has reached with its major
customers. As a result, INTERMET has withdrawn its motion for
authority to reject certain executory supply contracts with its
major customers. As previously announced, Deutsche Bank Trust
Company Americas and The Bank of Nova Scotia have committed $60
million of debtor-in-possession (DIP) funding to INTERMET under a
DIP credit agreement. INTERMET has had access to $20 million of
this facility since October. With the approval of the amended
customer agreements, INTERMET has now satisfied all conditions
relative to accessing the remaining $40 million of the DIP
facility. INTERMET's ability to borrow under the DIP facility
continues to be subject to a budget and satisfaction of customary
reporting and collateral requirements. Today, INTERMET and the DIP
lenders agreed to an amendment of the DIP credit agreement that
extends the due date for certain deliverables to January 26, 2005,
and makes certain technical revisions to the credit agreement. The
amendment will permit INTERMET to borrow funds under the DIP credit
facility pursuant to a budget pending its satisfaction of these
remaining conditions. About INTERMET With headquarters in Troy,
Michigan, INTERMET Corporation is a manufacturer of powertrain,
chassis/suspension and structural components for the automotive
industry. The company has approximately 5,800 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 can be found on the Internet at
http://www.administar.net/ . DATASOURCE: INTERMET Corporation
CONTACT: Mike Kelly of INTERMET Corporation, +1-248-952-2500 Web
site: http://www.intermet.com/ http://www.administar.net/
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