Intermet gains tentative access to full $60 million DIP facility

New York, Nov. 12 - Intermet Corp. said it has agreed to an amendment with the lenders of its debtor-in-possession credit facility that will give it access to the full $60 million.

Previously, the company could only draw $20 million through Dec. 31, 2004.

The additional availability, included in an amendment dated Nov. 8, is subject to completion of collateral documents and other paperwork, approval by Deutsche Bank and Scotia Capital of an updated budget, no material adverse change in Intermet's business, execution of agreements satisfactory to Deutsche Bank and Scotia Capital by Intermet and customers representing 75% of the company's gross sales, and minimum availability of $25 million under the borrowing base.

The U.S. Bankruptcy Court for the Eastern District of Michigan has already approved the amendment and Intermet has paid the $1 million commitment fee, according to an 8-K filing with the Securities and Exchange Commission.

The DIP facility has an interest rate of Libor plus 300 basis points.

Intermet, a Troy, Mich., maker of powertrains and other components for the auto industry, filed for bankruptcy on Sept. 29. Its Chapter 11 case number is 04-67597.

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