INTERMET Distributes Solicitation Materials in Connection With Plan of Reorganization
August 17 2005 - 12:35PM
PR Newswire (US)
Confirmation hearing set for September 26, 2005 TROY, Mich., Aug.
17 /PRNewswire-FirstCall/ -- INTERMET Corporation (INMTQ:PK), a
diversified manufacturer of cast-metal components, today announced
that it has begun distributing solicitation materials in connection
with its proposed Plan of Reorganization. The United States
Bankruptcy Court for the Eastern District of Michigan approved the
Company's amended Disclosure Statement and the proposed
solicitation and balloting process on August 12, 2005. INTERMET is
distributing the Disclosure Statement and balloting materials to
all eligible creditors in order to solicit their votes in support
of the Plan. Depending on the type and amount of their claim,
holders of general unsecured claims may be eligible to select a
variety of elections under the proposed Plan, including a cash-out
amount election, a convenience class election, an inducement cash
election, and a new common stock and rights offering election.
Eligible claimants must vote on the Plan and make all relevant
elections on or before September 20, 2005. An eligible claimant
wishing to participate in the rights offering contemplated by the
new common stock and rights offering election must hold their claim
from the close of business on September 1, 2005, the record date
for the rights offering, through the effective date of the Plan. In
the absence of any other election, an eligible claimant will be
deemed to have made the cash-out election. In advance of receiving
solicitation packages, the proposed Plan and related Disclosure
Statement are available at http://www.administar.net/ , the website
of the Company's claims agent. The proposed Plan and related
Disclosure Statement were also filed with the Securities and
Exchange Commission on August 15, 2005, on a Form 8-K and are
available at the website maintained by the Commission at
http://www.sec.gov/ . The confirmation hearing with respect to the
Plan of Reorganization is scheduled to begin on September 26, 2005.
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. 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/
http://www.administar.net/ http://www.sec.gov/
http://www.administar.net/intermet
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