STRATHROY, Ontario - Meridian Technologies Inc., the automotive industry's largest supplier of magnesium die casting assemblies, today announced that it has reached a restructuring agreement with its lenders. Under the terms of the agreement, a newly reorganized company is being created with a recapitalized balance sheet and significantly lower debt burden.
The Company’s secured lenders, led by GE Commercial Finance as agent, have agreed to provide the newly reorganized company with $55 million in new financing, consisting of a $30 million revolving credit facility and a $25 million term loan upon closing. In addition to the new financing, the Company’s secured lenders will exchange a significant portion of the existing debt for all of the equity in the newly reorganized company that is being created by this transaction. The result will be a new Meridian Lightweight Technologies with a significantly deleveraged balance sheet, and sufficient liquidity to support its operations and execute its strategic plan to return to profitability.
“This agreement is excellent news for our company, our employees and our suppliers and customers worldwide because it means that the cloud of uncertainty that has created doubts about our long-term viability has been swept away,” said Chief Restructuring Officer Robert M. Caruso. “We are extremely pleased that going forward we will have the support of an owner with resources necessary to successfully operate our business.”