Intermet emerges from chapter 11 bankruptcy protection, enters credit facility.Intermet Corp., Troy, Mich., emerged from chapter 11 bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. protection after its previously approved plan of reorganization became effective Nov. 9. In connection with the emergence, Intermet entered into a $285million credit facility with Goldman, Sachs & Co., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , as the lead arranger Lead arranger The senior tier of arranger . "We are pleased to have successfully completed our restructuring process," said Intermet CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Gary F. Ruff. "The entire Intermet team can now focus its complete attention and efforts on manufacturing castings and serving our customers." As contemplated by the company's plan of reorganization, Intermet has become a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. . Intermet's former common stock has been cancelled and shares of its new common stock will be issued to its pre-petition unsecured creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. in accordance with the terms of the plan. In addition, simultaneously with the consummation of and as contemplated by the plan of reorganization, the company raised $75 million through a rights offering in which electing pre-petition unsecured creditors purchased shares of common stock of the reorganized company. Finally, as discussed in the reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. , Intermet will file the appropriate forms with the Securities and Exchange Commission (SEC) to deregister as a public company and terminate its public company reporting obligations. Going forward, the company will be a private firm and will not be required to file further reports with the SEC. Intermet's plan of reorganization also provides that holders of unsecured claims of $125,000 or more either will receive common stock of the company or receive a cash distribution, the amount of which is based on the claimholders' voting elections or their failure to vote or make certain elections. Holders of claims under $125,000, called convenience claims, will receive a cash distribution. Intermet is in the process of determining appropriate reserves, as necessary, for certain disputed claims and expects to begin making distributions to claim holders when practicable after the amounts of these reserves are sufficiently resolved to enable meaningful distributions. |
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