Fort Worth-based Intermet Corporation files for chapter 11 reorganization

by PegNews wire

FORT WORTH — 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.

Founded in 1846, Intermet Corporation is a leading manufacturer of cast-metal components for the automotive, commercial-vehicle and industrial markets.

Source: Interment Corporation