Exide Technologies Receives Final Bankruptcy Court Approval of Debtor-In-Possession Financing
MILTON, Ga., July 24, 2013 /PRNewswire/ -- Exide Technologies, a global leader in stored electrical solutions, reported today that it has received final Bankruptcy Court approval of its $500 million debtor-in-possession (DIP) financing provided by JPM Chase and a group of lenders to whom the DIP financing was syndicated.
On June 10, Exide Technologies filed a voluntary petition for reorganization pursuant to U.S. federal restructuring laws in the District of Delaware. On June 11, 2013, the Court granted interim approval of access of up to $395 million of the DIP financing facility. The final approval provides the Company with access to the remaining $105 million which, along with the previously released funds under the DIP financing, provides the Company with liquidity to maintain its operations, pay employees and purchase goods and services.
"We are very pleased to have arranged financing that is sufficient to enable us to continue operations uninterrupted while we proceed with our restructuring," said James R. Bolch, Exide's President and Chief Executive Officer. "We are grateful for the support of our lenders and the confidence they have displayed in Exide by meeting our funding needs."
Exide Technologies' international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. More information on Exide's U.S. restructuring is available on the Company's web site, www.exide.com.
About Exide Technologies
Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's global business groups provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications. Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications
Forward Looking Statement
This press release contains forward-looking statements with respect to our Chapter 11 filing and related matters. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Important factors that could cause our actual results to differ materially from those anticipated in the forward-looking statements include, among other things: (i) the ability of Exide to develop, prosecute, confirm and consummate the Chapter 11 plan of reorganization; (ii) the potential adverse effect of the Chapter 11 filing on Exide's liquidity and operations and the risks associated with operating businesses under Chapter 11 protection; (iii) the ability of Exide to comply with the terms of the DIP financing facility; (iv) Exide's ability to obtain additional financing; (v) Exide's ability to retain key management and employees, (vi) customer response to the Chapter 11 filing; and (vii) the risk factors or uncertainties listed from time to time in Exide's filings with the Securities and Exchange Commission and with the U.S. Bankruptcy Court in connection with the company's Chapter 11 filing. Other factors and assumptions not identified above are also relevant to the forward-looking statements, and if they prove incorrect, could also cause actual results to differ materially from those projected.
SOURCE Exide Technologies