INTERMET Receives Court Approval of $20 Million Interim Funding Under DIP Credit Facility
October 20 2004 - 9:12AM
PR Newswire (US)
INTERMET Receives Court Approval of $20 Million Interim Funding
Under DIP Credit Facility TROY, Mich., Oct. 20
/PRNewswire-FirstCall/ -- INTERMET Corporation (Pink Sheets: INMTQ)
today announced that the U.S. Bankruptcy Court of the Eastern
District of Michigan entered an order giving INTERMET approval to
borrow up to $20 million under the $60 million debtor-in-possession
(DIP) credit facility that Deutsche Bank Trust Company Americas and
The Bank of Nova Scotia have committed to provide to the company.
The court's order approved the material terms and conditions of the
financing that have been negotiated by INTERMET and the lenders.
The order also approved the placement of a lien on substantially
all of INTERMET's assets having priority over the liens of the
company's pre-petition lenders. INTERMET's borrowing of the $20
million is subject to a budget that will be agreed to by the
company and the DIP lenders as part of a DIP credit agreement to be
executed. The $20 million interim funding will be available to
INTERMET following the execution of the DIP facility documents,
including a credit agreement, which the company expects will occur
this week. The remaining $40 million of availability under the DIP
facility is subject to additional conditions and limitations,
including approval by the DIP lenders of an updated budget and
financial projections prepared by INTERMET, final approval by the
court and other customary 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 6,000 employees worldwide. More information is
available on the Internet at http://www.intermet.com/ . Cautionary
Statement This news release includes forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. The word and phrases "expects," "anticipates" and similar
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 ability to consummate its
anticipated 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: Investor Inquiries: Bytha
Mills, or Media Inquiries: Mike Kelly, of INTERMET Corporation,
+1-248-952-2500 Web site: http://www.intermet.com/
Copyright