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Intermet emerges from Chapter 11, becomes private company
By Caroline Salls
Pittsburgh, Nov. 9 - Intermet Corp.'s plan of reorganization has become effective and the company has emerged from bankruptcy as a private company, according to a company news release.
In connection with the emergence, Intermet entered into a $285 million credit facility with Goldman, Sachs & Co. as the lead arranger.
In addition, Intermet raised $75 million through a rights offering through which unsecured creditors purchased shares of the reorganized company.
The company planned to file papers with the Securities and Exchange Commission Wednesday to deregister as a public company and terminate its public company reporting obligations. Going forward, Intermet will be a private company and will not be required to file further reports with the SEC.
Under the plan of reorganization, Intermet's former stock has been cancelled and shares of its new stock will be issued to its unsecured creditors.
Also under the plan of reorganization, unsecured creditors, including holders of the 9¾% senior notes due 2009, will be able to receive new shares or cash.
The company will set aside 2.5 million shares to allocate to unsecured creditors, and those who pick this option can also participate in a rights offer of up to 7.5 million further shares at $10.00 per share.
The plan proposes that R2 Investments, LDC and Stanfield Capital Partners LLC will backstop the rights offering.
Under the cash option, payments will be at $10.00 per allocated share.
Between them, R2 and Stanfield own $58 million of the 9¾% notes.
Intermet will pay in full the administrative claims, tax claims, claims on the debtor-in-possession credit facility, U.S. Trustee fees, consignment claims and claims of some secured pre-petition creditors.
Funding for these payments will come from the exit facility and the proposed $75 million equity investment.
Intermet filed for bankruptcy on Sept. 29, 2004. Its Chapter 11 case number is 04-67597.
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