Meridian Automotive Systems, Inc. Receives Court Approval of First Day Motions; Normal Company Operations Continue
DEARBORN, Mich.--April 28, 2005--Meridian Automotive Systems, Inc. today announced that it has received approval for its "first day" motions from the United States Bankruptcy Court for the District of Delaware. These motions provide the relief necessary to ensure the continued operation of the Company in the ordinary course. As previously announced, Meridian filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 26, 2005.Included among the motions approved by the court are those related to the Company's ability to continue to pay employee salaries, wages and benefits in the ordinary course, utilize existing cash management systems, continue its customer programs and access, on an interim basis, up to $30 million of the $375 million in debtor-in-possession (DIP) financing arranged for the Company by JPMorgan.
Tom Divird, Meridian's Chief Executive Officer, said, "The approval of these motions helps ensure that Meridian will continue to operate normally while it restructures its finances. I am pleased that our restructuring process is beginning as smoothly as we expected, and I am very optimistic that we will make solid progress in the months to come."
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.
This news release contains forward-looking statements based on current assumptions and forecasts made by Meridian Automotive Systems management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future consolidated results, financial situation, development or performance of the company, and the estimates given here. The company assumes no liability to update such forward-looking statements or to adapt to future events or development.