INTERMET Reorganization Plan Confirmed By Court
September 26 2005 - 6:17PM
PR Newswire (US)
Company prepares to emerge from Chapter 11 TROY, Mich., Sept. 26
/PRNewswire-FirstCall/ -- INTERMET Corporation (INMTQ:PK), a
diversified manufacturer of cast-metal components, today announced
that the United States Bankruptcy Court for the Eastern District of
Michigan has confirmed INTERMET's Plan of Reorganization. The
confirmation is subject to the entry of a formal confirmation
order. "Today, INTERMET's customers, employees and new business
partners received a clear vote of confidence in our company," said
Gary F. Ruff, Chairman and CEO of INTERMET. "This is a very
important event for our company, and one that also defines our
future direction. The confirmed Plan is crafted to provide the
resources we need to execute our business strategy, and I am
confident that we will meet our new goals. I would like to thank
the more than 5,000 INTERMET employees, our valued customers, and
creditors for their support during this challenging period." Under
the confirmed Plan of Reorganization there are a number of
conditions that must be satisfied in order for the confirmed Plan
to become effective, including the closing and initial funding of a
post-bankruptcy credit facility. INTERMET has received a commitment
letter from Goldman, Sachs & Co. with respect to this facility,
and is in the process of negotiating a definitive credit facility.
INTERMET currently expects that it will enter into the
post-bankruptcy credit facility, satisfy the other conditions to
Plan effectiveness and emerge from Chapter 11 during the month of
October 2005. The material terms of the confirmed Plan are
summarized in INTERMET's Amended Disclosure Statement approved by
the Bankruptcy Court on August 12, 2005. The Amended Disclosure
Statement is available at http://www.administar.net/ , the website
of the Company's claims agent, and was also filed with the
Securities and Exchange Commission on August 15, 2005, on a Form
8-K and is available at the website maintained by the Commission at
http://www.sec.gov/ . 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 5,200 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 entry into an appropriate
post-bankruptcy credit facility; INTERMET's continued access to its
DIP financing during the pendency of the bankruptcy; 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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