Meridian Automotive requests court OK to enter into fee letters with three potential exit lenders

By Caroline Salls

Pittsburgh, May 26 - Meridian Automotive Systems, Inc. requested court approval to enter into fee letters with up to three potential exit facility lenders, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it has not entered into an agreement with any potential lender.

Meridian said it is still negotiating the terms of the fee letters but does not expect the fees associated with the prospective lenders' reasonable out-of-pocket expenses, including legal fees, to exceed $600,000.

According to the motion, the fees paid to any one potential lender will not exceed $250,000.

The fee letters will also indemnify the potential lenders and their affiliates from any claims or liabilities in connection with the exit facility.

A hearing is scheduled for June 14.

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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