Intermet Corp. reports it entered into a credit agreement with Deutsche Bank Trust Co. Americas and The Bank of Nova Scotia for a $60 million debtor-in-possession (DIP) credit facility. By implementing the agreement, Intermet gains access to as much as $20 million.
The rest of the $60 million is available to Intermet under additional conditions and limitations set by the DIP facility, including bankruptcy court approval.
The automotive supplier declared bankruptcy in September, citing the impact of unstable steel scrap prices.
Chairman and CEO Gary F. Ruff stated: "This agreement with the lenders is a positive step for us. It gives the company the financial flexibility necessary not only for maintaining critical customer deliveries, but also for continuing with efforts to reorganize and strengthen the company. We are especially pleased that two major lenders have cooperated on a financing arrangement that will benefit Intermet and our supplier partners, who continue to support our manufacturing operations."