Intermet DIP amendment approved; extends maturity to Oct. 28

By Caroline Salls

Pittsburgh, Oct. 21 - Intermet Corp. obtained approval of an amendment to its debtor-in-possession financing agreement with The Bank of Nova Scotia and Deutsche Bank Trust Co. Americas, which extends the DIP maturity date to Oct. 28, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

In its motion, the company said it requested the extension to be sure its plan of reorganization becomes effective before the DIP agreement expires. The court confirmed the plan Sept. 26.

The amendment also allows the maturity date to be extended to Nov. 10 and subsequently to Nov. 24 upon consent of the company and the lenders.

Intermet said the DIP extension also will allow it to avoid an event of default under the credit agreement.

In addition, the amendment clarifies the lenders' consent to some asset sales.

The company will not be required to apply the proceeds of the asset sales to reduce the revolving loan commitments under the DIP credit agreement unless the proceeds exceed $5 million.

The company will be required to pay a $250,000 amendment fee.

Intermet, a Troy, Mich., auto parts maker, filed for bankruptcy on Sept. 29, 2004. Its Chapter 11 case number is 04-67597.

© 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.