Intermet files plan of reorganization

New York, June 24 - Intermet Corp. said it filed a plan of reorganization which includes a $75 million equity investment backed by R2 Investments, LDC and Stanfield Capital Partners, LLC.

Under the plan, 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 per share.

R2 and Stanfield will backstop the rights offering.

Under the cash option, payments will be at $10 per allocated share.

Between them R2 and Stanfield own $58 million of the 9¾% notes.

Holders of Intermet's pre-bankruptcy equity will receive nothing.

Intermet will pay in full 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 a $75 million exit facility currently being negotiated and the equity investment.

Intermet filed for bankruptcy on Sept. 29, 2004 in the U.S. Bankruptcy Court for the Eastern District of Michigan. Its Chapter 11 case number is 04-67597.

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