Intermet (NASDAQ:INMTQ)
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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/