Troubled Intermet adopts employee retention program

By Jeff Pines

Washington, Sept. 24 - Intermet Corp., which earlier this month said it expects to be in default on its credit agreement at Sept. 30, adopted a key employee retention program, the company said in a Friday filing with the Securities and Exchange Commission.

The program would apply to about 100 employees, including the company's president and chief executive officer, its vice president and chief financial officer, vice president of sales and marketing and its vice president and general counsel.

According to the company's most recent 10-K report, it has 5,652 employees in North America and Europe.

In return for staying with the company until Dec. 31, 2005, Intermet would pay them a bonus before June 30, 2006.

Intermet reported in a Sept. 17 SEC filing it is discussing the situation with its lenders. Its third quarter net loss, estimated to be between $19 million and $24 million due to the high cost of scrap metal and other raw materials, is expected to put the company into default on several covenants for its $90 million revolving credit facility and $120 million term loan. The agent for the lenders has told the company it is prepared to recommend a waiver until early December.

The company is a Troy, Mich.-based manufacturer of automotive powertrains.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.