INTERMET Reaches Agreements With Major Customers to Amend Contracts
December 28 2004 - 12:57PM
PR Newswire (US)
INTERMET Reaches Agreements With Major Customers to Amend Contracts
Company intends to withdraw motion to reject supply contracts TROY,
Mich., Dec. 28 /PRNewswire-FirstCall/ -- INTERMET Corporation
(INMTQ.PK) announced today that it has reached agreements with its
largest customers to amend certain purchase orders and contracts on
mutually satisfactory terms, primarily related to the recovery of
scrap-steel and other raw-material costs. INTERMET intends to file
a motion today with the Bankruptcy Court for authority to assume
these agreements. If the motion is approved by the court, INTERMET
intends to withdraw the motion it filed with the court on November
17, 2004, for authority to reject certain executory customer supply
contracts. "We are pleased that agreements have been reached with
these important customers, who represent nearly 80 percent of the
company's North American business," said Gary F. Ruff, INTERMET's
Chairman and CEO. "It is a major step in the right direction as we
continue with our restructuring process. We appreciate the support
of our customers and we remain committed to helping them meet their
needs with quality cast-metal components." INTERMET informed
certain customers in mid-November that it was asking for court
authority to reject contracts determined to be burdensome because
of terms that did not allow sufficient recovery of raw-material
costs, primarily scrap steel. Terms of the amended agreements were
not disclosed. 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/ . Cautionary Statement This news release
includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The word
"intends" and similar words and 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: Mike Kelly of INTERMET
Corporation, +1-248-952-2500 Web site: http://www.intermet.com/
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