Intermet granted first exclusivity extension

By Jennifer Lanning Drey

Portland, Ore., Dec. 31 - Intermet Corp. obtained an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The exclusive plan-filing period was extended to April 30 and the solicitation period to June 30, 2009.

When requesting the extension, Intermet said it had made significant progress in the infancy of its Chapter 11 case, but developments in the U.S. economy and the automotive industry had made it difficult to develop a business plan to form the basis of discussions with its creditor constituents regarding a plan of reorganization.

Specifically, the company said there was a strong likelihood of product streamlining through the elimination of brands and models and possibly corporate combinations.

In the near term, Intermet said there would be dramatic reductions in auto production to adjust to the low sales levels, which would impact how the company designs its business plan.

Intermet, a Fort Worth, Texas-based automotive cast component supplier, filed for bankruptcy on Aug. 12. Its Chapter 11 case number is 08-11859.

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