Intermet Corp. reports that it reorganinzation plan, previously approved by the federal court overseeing the company’s bankruptcy, has become effective. In light of that, Intermet entered into a $285-million credit facility with Goldman, Sachs & Co. as the lead arranger. Intermet chief executive Gary F. Ruff stated: "We are pleased to have successfully completed our restructuring process. The entire Intermet team can now focus its complete attention and efforts on manufacturing castings and serving our customers."
Intermet manufactures cast-metal components for the automotive, commercial- vehicle, and industrial industries.
The reorganized company is a Delaware corporation. The former organization’s common stock has been cancelled and shares of its new common stock will be issued to its pre-petition unsecured creditors in accordance with the terms of the plan.
Also, as indicated in the reorganization plan, Intermet raised $75 million through a rights offering pursuant to which pre-petition unsecured creditors were entitled to purchase shares of common stock of the reorganized company. It has filed with the Securities and Exchange Commission its intent to be delisted as a public company.