Intermet amends DIP agreement to adjust EBITDA, expand expense allowance

By Caroline Salls

Pittsburgh, June 6 - Intermet Corp. amended its $60 million debtor-in-possession credit agreement with Deutsche Bank Trust Co. Americas and The Bank of Nova Scotia, according to an 8-K filing with the Securities and Exchange Commission.

The amendment adjusts Intermet's monthly EBITDA requirement to conform to EBITDA levels projected in the company's revised 2005 budget.

Also, the amendment expands allowed expenses so Intermet can buy machinery for its Radford, Va., facility and expands Intermet's letter-of-credit availability.

Under the DIP agreement, Intermet is required to pay a $75,000 amendment fee to Scotia Capital.

Intermet, a Troy, Mich.-based producer of ductile iron, aluminum, magnesium and zinc castings for the automotive and industrial markets, filed for bankruptcy on Sept. 29, 2004 with the U.S. Bankruptcy Court for the Eastern District of Michigan. Its Chapter 11 case number is 04-67597.

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