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Intermet gets third amendment to DIP facility
By Jeff Pines
Washington, Dec. 31 - Intermet Corp. obtained court approval Thursday for the third amendment to its $60 million debtor-in-possession financing, extending the company's deadline to meet certain requirements to Jan. 14 from Dec. 31.
The U.S. Bankruptcy Court for the Eastern District of Michigan approved the amendment. Intermet, a Troy, Mich., maker of powertrains and other auto components, reported the details to the Securities and Exchange Commission Thursday.
Intermet entered the agreement on Dec. 23 with Deutsche Bank Trust Co. of the Americas as collateral agent and co-agent and The Bank of Nova Scotia as administrative agent.
The company can borrow up to $20 million on the facility. The amendment enables Intermet to borrow on this portion of the DIP until Jan. 14, subject to a budget and other restrictions, it said.
Originally, the DIP agreement gave the lenders until Dec. 31 to tell Intermet whether they are satisfied with the company's agreements reached with its major customers representing 75% of Intermet's gross sales. The amendment extends this deadline to Jan. 14.
The extension also gives Intermet until Jan. 14 to submit a cash flow budget and forecast and for the lenders to approve it.
The agreement required Intermet to pay Deutsche Bank and The Bank of Nova Scotia a $125,000 amendment fee by Thursday.
In order for the company to retain access to the remaining $40 million, there must be no material adverse change in Intermet's business or the conditions of it or the company's subsidiaries as a whole.
Intermet filed for bankruptcy on Sept. 29, 2004. Its Chapter 11 case number is 04-67597.
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