Meridian Creditors To See Recovery

Law360, New York (October 24, 2006, 12:00 AM EDT) -- Meridian Automotive Systems Inc. has amended its disclosure statement to win back the support of its unsecured creditors, who had objected to the bankrupt auto parts supplier’s most recent reorganization plan.

According to court documents filed Monday with the U.S. Bankruptcy Court in Wilmington, Del., the unsecured creditors will now get 10%, or up to $2 million, of a litigation trust to be set up once the company emerges from Chapter 11.

Though this is still just a small fraction of the $96 million owed to...
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