Meridian Automotive Systems Files for Chapter 11 But Normal Operations Continue

DEARBORN, Mich.--April 26, 2005--Meridian Automotive Systems, Inc. today announced that it has filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The Company and its eight domestic subsidiaries filed their voluntary petitions for relief in the United States Bankruptcy Court for the District of Delaware.

Meridian said that it elected to file for reorganization in order to restructure its debt, which has become unsustainable in the current market environment. Meridian said that it needs to restructure its balance sheet in order to face the challenges posed by increases in steel and resin prices and the termination of the early payment programs by certain original equipment manufacturers (OEM). These factors, combined with reduced production by OEMs, have had an adverse impact on Meridian's liquidity position in recent months.

Thomas Divird, Meridian's Chief Executive Officer, said, "Meridian has very strong operations, great relationships with a diversified customer base and high quality products. However, we need to reduce our debt and simplify our capital structure in order to remain competitive under current market conditions. After considering many options, we determined that Chapter 11 provides Meridian with the most prudent approach to restructure our balance sheet while maintaining normal operations. We expect to emerge from this process with a more appropriate capital structure that will allow us to be stronger and more efficient in the future."

In conjunction with its filing, Meridian has secured commitments for up to $375 million in debtor-in-possession financing from JPMorgan, subject to court approval. This financing will be used to refinance Meridian's current First Lien facilities and provide sufficient liquidity to continue normal operations.

Richard E. Newsted, Meridian's President, said, "Combined with our normal cash flow, the DIP financing that we have secured gives substantial assurance that we will be able to operate normally and continue to meet commitments to our customers throughout this process."

Meridian has requested, and expects to receive, court approval to continue to pay employee salaries, wages and benefits in the ordinary course. Meridian will pay suppliers for the post-petition delivery of goods and services in the ordinary course.

Meridian's operations in Mexico, Canada and Brazil were not included in the filing.

The Company has established a Supplier Call Center to answer questions from its suppliers. The toll-free phone number is 866-845-1979.

Meridian has retained the law firm of Sidley Austin Brown & Wood LLP as its restructuring counsel. FTI Consulting is acting as the Company's financial advisor.

About Meridian Automotive Systems

Meridian Automotive Systems is a leading supplier of technologically advanced front and rear end modules, lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers. Meridian operates 22 plants in the United States, Canada and Mexico, supplying Original Equipment Manufacturers and major Tier One parts suppliers.