Intermet gets interim approval for $20 million of $60 million DIP

By Jeff Pines

Washington, Oct. 20 - Intermet Corp. said it obtained interim court approval to access $20 million of a $60 million debtor-in-possession financing facility.

Deutsche Bank Trust Co. Americas and the Bank of Nova Scotia are providing the financing.

The court order also gives the two banks a higher priority lien on the company's assets than Intermet's pre-petition creditors.

The Troy, Mich.-based manufacturer of powertrains and other components for the auto industry will have access to the remaining $40 million after a final order is entered.

Intermet filed for bankruptcy on Sept. 30 with the U.S. Bankruptcy Court for the Eastern District of Michigan. Its Chapter 11 case number is 04-6759.

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