By ANN PIERCEALL

Herald-Whig Staff Writer

Citing "unprecedented low automotive sales volumes and high commodity prices," Intermet Corporation announced Wednesday that it has filed for Chapter 11 bankruptcy.

The Texas-based company has Missouri plants in Monroe City and Palmyra, which employs 347 combined, down from about 600 two years ago. Company spokesman Gordon Cole said those jobs are safe for now.

"There are no layoffs planned, but we will continue review of all operations in the months ahead as an evaluation of business levels," Cole said. "We're looking to move through this expeditiously."

Intermet, which makes cast-metal components for the automotive, commercial-vehicle and industrial markets, also named Bob Tamburrino president and CEO. He replaces Jeff Mihalic, who resigned but plans to stay on in a consulting role.

This is the second bankruptcy filing by the company in five years. Intermet officials say they plan to continue normal operations while reorganizing its financial and operating structure.

Intermet's application to the U.S. Bankruptcy Court for the District of Delaware includes requests to use cash collateral to finance operations and pay employees' wages, salaries and benefits.

Cole said the high price of oil is impacting car sales, which in turn affects manufacturers like Intermet. The Chapter 11 filing will allow it to address revenue losses and cash flow issues brought on during the past 60 days.

"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."

The company filed for bankruptcy in the fall of 2004 and returned to being a privately-held company. After the 2004 bankruptcy filing, the city of Monroe City had to write off about $123,000 in utilities fees and Palmyra wrote off $110,366.

Palmyra City Clerk Rhonda Dodd said the city has received two payments toward that debt since Intermet came out of bankruptcy, one for $6,448 and one for $1,500.

"In light of the loss we have taken from the last bankruptcy filing just four years ago, this is a real burden to the city of Palmyra utilities to have to take another loss due to their filing," she said.

Monroe City Administrator Jim Burns said that Intermet plant uses natural gas and electricity supplied by the city, with a monthly bill of more than $100,000.

"Depending on how the bankruptcy proceeds, it's my understanding we would be in line with the other unsecured creditors ... to get a portion of that back," Burns said.

Burns said the company had made "significant improvements" after the last bankruptcy, "but a lot of their business is tied to the traditional big three American automakers."

He said the biggest concern is the potential loss of local jobs.

"Obviously a lot of our citizens are employed there," Burns said. "Should the worst-case scenario come to pass that the company closes, we would have citizens without jobs and that has a snowball effect. In addition to losing revenue from the company, you now have citizens with no way to pay bills."

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.

-- apierceall@whig.com/(573) 221-5879