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