Meridian Automotive pre-bankruptcy loan agent objects to lengthy exclusivity extension

By Caroline Salls

Pittsburgh, Dec. 1 - Meridian Automotive Systems, Inc. pre-bankruptcy secured first-lien facility agent Credit Suisse, Cayman Islands Branch objected to the company's request for an extension to its exclusive period to file a plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, Meridian is required to deliver a term sheet for a plan of reorganization by Dec. 15, and the agent should have the opportunity to review the term sheet before considering the merits of the exclusivity extension.

Credit Suisse said the company is seeking to "use the requirement of delivery of a term sheet as a sword," saying there is insufficient time between Dec. 15 and the current plan filing date of Dec. 22 "to bridge the gap between a term sheet and a confirmable plan of reorganization."

The objection said the company does not have to wait until the Dec. 15 deadline to deliver the term sheet, "and the fact that one week is insufficient does not dictate that 120 days is necessary."

Meridian, a Dearborn, Mich., supplier of front and rear end modules, 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.

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