DETROIT -- Meridian Automotive Systems Inc. said Tuesday, Aug. 15, that it will amend its reorganization plan so it can emerge from Chapter 11 bankruptcy protection with less debt and greater financial flexibility.
Meridian, of Allen Park, Mich., previously set a goal to emerge from bankruptcy in September but now plans to emerge by October.
Meridian said in a statement that it is discussing the terms of a revised plan with its major creditors, as well as the terms of exit financing with certain lenders.
"Given the continued challenges within the industry, while we are focused on exiting Chapter 11 as quickly as practical, the short delay in our emergence will be more than offset by the positive impact of a post-confirmation balance sheet with less debt and increased liquidity," Meridian CEO Richard Newsted said in the statement.
Meridian said it will pursue the confirmation hearing on its reorganization plan, file an amended disclosure statement and reorganization plan with the Bankruptcy Court and again solicit creditors.
Meridian Automotive filed for Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., in April 2005. The company supplies front and rear modules and exterior plastic lighting to automakers.
Meridian ranks No. 51 on the Automotive News list of the top 150 suppliers to North America, with original-equipment automotive parts sales of $1.00 billion in 2005.
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