Intermet gets court approval of plan of reorganization, sale agreement

By Jennifer Lanning Drey

Portland, Ore., July 15 - Intermet Corp. received court approval of its plan of reorganization, which is based on the $11 million sale of substantially all of Intermet's assets to Revstone Industries, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Intermet also received court approval of the asset sale Tuesday, according to a separate court filing. The purchase price is subject to a closing price adjustment.

Treatment of creditors under the plan 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 a share of the sale proceeds;

• 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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