Exide Technologies Receives Interim Court Approval of $500 Million Financing Agreement that Assures Continued, Uninterrupted Global Operations
Continues All Customer and Employee Programs Without Interruption
MILTON, Ga., June 11, 2013 /PRNewswire/ -- Exide Technologies, (Nasdaq: XIDE), a global leader in stored electrical solutions, announced today that it has received U.S. Court approval of a variety of motions that will support the Company's operations as it proceeds with its restructuring, including interim approval of its $500 million Debtor-in-Possession (DIP) financing agreement with JP Morgan Chase , N.A. designed to facilitate and ensure the continued uninterrupted operation of Exide's global business.
The Honorable Judge Kevin J. Carey authorized the Company to access up to $395 million of the DIP Financing Facility – the full $225 of the ABL revolving credit facility and $170 of the $275 term loan facility. It is contemplated that certain of the current holders of the Company's 8.625% Senior Secured Notes due February 1, 2018 will become lenders under the DIP Financing Facility. The Company's current asset based lending facility with outstanding obligations of approximately $160 million, will be paid off in full as a part of the new funding. The DIP financing and cash generated from operations will be used to support the Company's global operations during the course of these proceedings. A hearing to consider final approval of the DIP financing is scheduled on July 11, 2013 at 10:00 am EDT.
In addition to the financing, the Company also received authorization to continue its employee wages and benefits according to their existing plans, ensuring that employees will continue to be paid according to schedule. The Company also received authorization to honor certain prepetition obligations to customers and to continue other customer programs including warranties, rebates, returns, refunds, exchanges, adjustments, promotions, credits, guarantees and all such other similar policies, programs and practices of the Debtors in the ordinary course of business on a post-petition basis.
"We are pleased with the approval by the Court of our 'first day motions,' particularly the DIP financing which is a key lynchpin to our go-forward business strategy. With this important step behind us, we can focus on servicing the needs of our customers in a timely and uninterrupted basis and continue businesses around the globe in the ordinary course," said Chief Executive Officer of Exide Technologies, James R. Bolch.
On June 10, Exide Technologies filed a voluntary petition for reorganization pursuant to U.S. federal restructuring laws in the District of Delaware. Exide Technologies' international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. The Company has also established two separate toll-free information lines: one for U.S. suppliers, 888-985-9831 and another for other interested parties, 855-291-0287. 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 systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.
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
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