Intermet disclosure statement approved; confirmation hearing July 14

By Jennifer Lanning Drey

Portland, Ore., June 17 - Intermet Corp. received court approval of the disclosure statement for its plan of reorganization Tuesday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for July 14.

As previously reported, Intermet's plan is based on a sale of the company's assets or a Chapter 11 liquidation if the assets are not sold.

Intermet said previously that its first-lien pre-bankruptcy lenders have agreed to credit bid their secured claims under a going-concern sale.

Creditor treatment

Treatment of creditors will include:

• The holders of priority non-tax claims and other secured debt claims will recover 100% in cash;

• Holders of administrative expense claims will recover 35% to 50% in cash, depending on the outcome of the asset sale, and the remaining portion of the claims will be treated as general unsecured claims;

• Holders of first-lien term loan claims will receive substantially all of the company's assets if their credit bid is successful. If not, these creditors will receive a share of the third-party sale proceeds. If no sale is completed, the first-lien term loan claimants will be paid through a lender liquidating trust;

• Holders of second-lien term loan claims will recover 1% to 2% through their share of cash and lender liquidating trust B interests;

• Holders of general unsecured claims will recover 1% to 2% in cash in an amount that depends on the outcome of the asset sale, proceeds from excluded assets and trust C interests in the lender liquidating trust; and

• Holders of equity interests and related claims and intercompany claims will receive no distribution.

Intermet, a Fort Worth, Texas-based automotive cast component supplier, filed for bankruptcy on Aug. 12, 2008. Its Chapter 11 case number is 08-11859.

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