Intermet Corp. reports that the U.S. Bankruptcy Court overseeing its Chapter 11 process has approved the company’s plan of reorganization, which remains subject to a formal confirmation order. The manufacturer of cast-metal components for automotive, commercial-vehicle, and industrial industries filed for creditor protection in September 2004. It presented its reorganization plan this past summer, and last month gained approval for its capital financing strategy.
The reorganization terms were approved in August and filed with the Securuties and Exchange Commission at that time.
According to the plan, several conditions 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 a commitment on financing from Goldman, Sachs & Co. with respect to this facility, and is negotiating to make it final.
Intermet states it expects that it will enter into the post-bankruptcy credit facility, and satisfy the other conditions to effect the plan, and emerge from Chapter 11 during October 2005.
"Today, Intermet's customers, employees and new business partners received a clear vote of confidence in our company," said Gary F. Ruff, Intermet chairman and CEO. "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."