Court Approves Intermet’s Creditor Agreements

Clears access to a further $40 million in DIP financing

The federal bankruptcy court overseeing Intermet Corp.’s reorganization has approved the series of agreements the company reached recently with its major customers, concerning amendments to certain purchase orders and contracts. Terms of the new agreements were not reported.

The credit agreements are primarily related to the recovery of scrap-steel and other raw-material costs, according to Intermet.

Intermet filed for creditor protection in September. At that time, Deutsche Bank Trust Company Americas and The Bank of Nova Scotia have committed $60 million of debtor-in-possession (DIP) funding to Intermet under a DIP credit agreement. Intermet has had access to $20 million of this amount since October.

With the approval of the amended customer agreements, Intermet now has satisfied all conditions relating to accessing the remaining $40 million. Intermet's ability to borrow under the DIP facility continues to be subject to a budget and satisfaction of customary reporting and collateral requirements.

Intermet and the DIP lenders agreed to an amendment of the DIP credit agreement that extends the due date for certain deliverables to January 26, 2005, and makes certain technical revisions to the credit agreement. The amendment will permit Intermet to borrow funds under the DIP credit facility pursuant to a budget pending its satisfaction of these remaining conditions.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish