Meridian up to $30 million interim DIP financing approved

By Caroline Salls

Pittsburgh, April 28 - Meridian Automotive Systems, Inc. received approval from the U.S. Bankruptcy Court for the District of Delaware to access up to $30 million in interim debtor-in-possession financing from JPMorgan, according to a company news release.

"The approval [of the interim DIP] helps ensure that Meridian will continue to operate normally while it restructures its financing," chief executive officer Tom Divird said in the release.

Meridian has secured commitments for up to $375 million in DIP financing from JPMorgan, according to its bankruptcy filing Tuesday.

The DIP is expected to consist of up to a $175 million revolving tranche A with an interest rate of Libor plus 250 basis points and a $200 million term loan B with an interest rate of Libor plus 350 basis points.

Maturity will be the earliest of 18 months from the date of filing, 45 days after the entry of the interim DIP if the final DIP order has not been made, confirmation of a plan of reorganization or the acceleration of the loans in accordance with the DIP agreement.

This financing will be used to refinance Meridian's current first-lien facilities and provide liquidity to continue normal operations.

Meridian is 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. Its Chapter 11 case number is 05-11168.

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