Normal Business Operations to Continue Uninterrupted FT. WORTH, Texas, Aug. 13
FT. WORTH, Texas, Aug. 13 /PRNewswire/ -- Intermet Corporation today
announced that it and its domestic subsidiaries have filed for Chapter 11
protection with the U. S. Bankruptcy Court for the District of Delaware. It
is intended that the filing will allow the company to continue normal
operations while it reorganizes its financial and operating structure. The
company also named Bob Tamburrino, president and CEO. He replaces Jeff
Mihalic, who has resigned but remains in a consulting role.
Intermet has applied to the Bankruptcy Court for, among other things,
authority to use its cash collateral to finance its operations and to pay its
employees' wages, salaries and current benefits of its hourly and salaried
employees, which should allow it to maintain uninterrupted production for
customers, meet its obligations to suppliers and employees, and consolidate
parts of its operation while restructuring debt.
Intermet anticipates that the action will allow it to address revenue
losses and cash flow issues brought on during the past 60 days of
unprecedented low automotive sales volumes and high commodity prices.
"Intermet has worked hard and made impressive gains in efficiency,
profitability and quality," said Tamburrino. "The Intermet team has
accomplished this through company-wide implementation of Lean, significant
overhead cost reductions and capital investment that have created a solid
foundation for long-term success. We intend to build on that success and be
around for the long haul," he said.
The company is working with a financial advisory firm and is actively
negotiating debtor-in-possession (DIP) financing to provide sufficient funding
to meet obligations and complete its restructuring effort.
More information on Intermet's restructuring, including access to Court
documents and other general information about the chapter 11 cases, is
available at www.intermet.com and at www.kccllc.com.
About Intermet: Founded in 1846, Intermet Corporation is a leading
manufacturer of cast-metal components for the automotive, commercial-vehicle
and industrial markets. With approximately 1,700 employees, the company is
organized into three distinct manufacturing groups: Die Cast, Ferrous and
PCPC(TM).
SOURCE Intermet Corporation
