Intermet Corp., which filed for creditor protection in September, gained approval from a federal bankruptcy court to borrow up to $20 million under the $60 million debtor-in-possession (DIP) credit facility. The credit has been arranged with Deutsche Bank Trust Co. Americas and The Bank of Nova Scotia.
Intermet and its lenders had previously negotiated the terms of the loan.
In addition, the court approved a lien placement on substantially all of Intermet’s assets, with priority over the liens of the company's pre-petition lenders.
“Intermet’s borrowing of the $20 million is subject to a budget that will be agreed to by the company and the DIP lenders as part of a DIP credit agreement to be executed,” the company stated.
The $20 million interim funding will be available to Intermet following the execution of the DIP facility documents, including a credit agreement. The remaining $40 million available under the DIP facility is subject to additional conditions and limitations, including DIP lenders’ approval of an updated budget and financial projections prepared by Intermet, final approval by the court, and other customary conditions.