Meridian requests court approval of $18.26 million Fowlerville, Mich., facility sale

By Caroline Salls

Pittsburgh, March 3 - Meridian Automotive Systems, Inc. requested court approval of the proposed $18.26 million sale of its Fowlerville, Mich., manufacturing facility to First Industrial Acquisitions, Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company also wants to enter into a 15-year leaseback transaction that would pay First Industrial $1.84 million for the first year of the leaseback and 2% increases of the base rent for each subsequent year.

First Industrial will pay a $360,000 deposit toward the purchase of the property.

Meridian will issue a $3.5 million letter of credit to First Industrial before the lease takes effect.

If the purchase agreement is terminated during an inspection period, Meridian will reimburse First Industrial's deposit and will pay a $200,000 commitment fee and up to $200,000 in expense reimbursement.

A hearing is scheduled for March 24.

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.

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