US: Supplier Intermet files Chapter 11
Metal parts supplier Intermet Corporation has filed for Chapter 11 bankruptcy protection for the second time in four years.
"It is intended that the filing will allow the company to continue normal operations while it reorganises its financial and operating structure," Intermet said in a statement.
The company also named Bob Tamburrino president and CEO, replacing Jeff Mihalic who has resigned but remains a consultant.
Intermet said it had had applied to bankruptcy court for authority to use its cash collateral to finance operations and pay employee wages, salaries and current benefits, 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," the supplier added.
"Intermet has worked hard and made impressive gains in efficiency, profitability and quality," said Tamburrino. "The... 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 added.
The company said it was 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.
The supplier of cast metal parts has over 30 automakers and tier-one suppliers in the US as customers.
Intermet became a private company after its last reorganisation in November 2005 following a filing for Chapter 11 protection in September 2004.