Released on August 13, 2008

Intermet Corp., Fort Worth, Texas, has filed for Chapter 11 protection with the U. S. Bankruptcy Court for the District of Delaware.

The automotive metalcasting company hopes the bankruptcy filing will allow it to continue normal operations while it reorganizes its financial and operating structure. The filing could allow Intermet the authority to use its cash collateral to finance its operations and pay employee wages, salaries and benefits. Intermet is working with a financial advisory firm to secure the financing. According to a press release issued by the company, the funds will be necessary for it to maintain uninterrupted production for customers.

The bankruptcy filing is intended to address revenue losses and cash flow issues during the past 60 days, according to the release. Bob Tamburrino, who has replaced Jeff Mihalic as Intermet president and CEO, said the losses have come about despite company-wide lean initiatives and capital investments.
 
Intermet employs approximately 1,700 in the production of cast metal components for the automotive, commercial-vehicle and industrial markets.