Meridian Automotive seeks court OK of contingent DIP rate increase, maturity extension

By Caroline Salls

Pittsburgh, Sept. 15 - Meridian Automotive Systems, Inc. requested court approval of a contingent interest rate increase on its debtor-in-possession facility and an extension to the DIP facility's maturity, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, after the company decided market conditions would force it to file a fourth amended plan of reorganization, which will delay its emergence from Chapter 11, it also decided to amend the DIP facility to make sure it had sufficient liquidity throughout its bankruptcy proceedings.

The interest rate will be increased by 50 basis points on any portion of the loan in excess of the $75 million borrowing base.

The company wants to extend the DIP facility's maturity to the earlier of consummation of a plan of reorganization or Dec. 31, which will automatically be extended to March 31, 2007 if the company pays an extension fee of 25 basis points times the total commitment as of Dec. 31.

The DIP facility currently expires on Oct. 31.

Meridian will pay a $187,000 amendment fee.

A hearing is scheduled for Oct. 20.

Meridian, a Dearborn, Mich., supplier of lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers, filed for bankruptcy on April 26, 2005. Its Chapter 11 case number is 05-11168.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.