Intermet files amended plan, changing unsecured creditor recovery amounts

By Caroline Salls

Pittsburgh, Aug. 8 - Intermet Corp. filed an amended plan of reorganization Friday that modifies recovery amounts for holders of general unsecured claims who will have several options for recovery, according to a filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

The general unsecured creditors will receive 13.38% recovery under a noteholder claims cash-out option, 3.77% under a non-noteholder claims cash-out option, 15% under a $1.39 million inducement cash option, 50.6% if they choose the new common stock and rights election for noteholder claims and 14.2% recovery if they choose the new common stock and rights election for non-noteholder claims.

Holders of $3.01 million in unsecured convenience claims will receive 22.5% recovery in cash.

Holders of $171 million in pre-bankruptcy lender claims will receive 100% recovery in cash.

As previously reported, Intermet's plan 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 $10.00 per share.

R2 and Stanfield 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.

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 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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