| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers I > Headlines for Intermet Corp. > News item |
Intermet $75 million equity financing commitment letter request denied by court
By Caroline Salls
Pittsburgh, July 18 - Intermet Corp.'s request to enter into a $75 million equity financing commitment letter was denied by the U.S. Bankruptcy Court for the Eastern District of Michigan, according to a company news release.
The request for the commitment letter from R2 Investments, LDC and Stanfield Capital Partners LLC was filed with Intermet's plan of reorganization on June 24.
The investors have the right to resubmit the letter.
Intermet added that it "continues to work toward confirmation of its plan of reorganization that will permit the company to exit from Chapter 11."
As previously reported, under the proposed 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.
The plan proposes that 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 proposed equity investment.
A hearing for approval of the company's disclosure statement is scheduled for Aug. 9.
Intermet, a Troy, Mich.-based 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.