Intermet Corp. reports it has reached agreements with its largest customers to amend certain purchase orders and contracts on mutually satisfactory terms. Intermet filed for creditor protection in September. 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. The company indicated it would be filing a motion today with the bankruptcy court for authority to assume these agreements. If the motion is approved by the court, Intermet will withdraw an earlier motion it filed for authority to reject some contracts.
Gary F. Ruff, Intermet chairman and CEO, stated: "We are pleased that agreements have been reached with these important customers, who represent nearly 80% of the company's North American business. 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."