MILTON, Ga., July 29, 2014 (GLOBE NEWSWIRE) -- Exide Technologies (OTCQB:XIDEQ) (www.exide.com) ("Exide" or the "Company"), a global leader in stored electrical-energy solutions, has announced that, on July 22, 2014 and July 25, 2014, Exide's DIP lenders approved two amendments to the Company's debtor-in-possession financing facilities (the "DIP Facilities"). The sixth amendment provides the Company with $60 million in incremental liquidity to execute its business plan and meet working capital needs for the upcoming inventory build season. The amendment also extends the maturity date of the DIP Facilities to December 31, 2014, which would be effective upon Exide's entry into a plan support agreement. The U.S. Bankruptcy Court for the District of Delaware entered the order approving the additional $60 million in liquidity to be provided under the sixth amendment on July 28, 2014. Exide currently expects to obtain the additional funding this week.
The seventh amendment, effective as of July 25, 2014, eliminates the date by which Exide is required to file a plan of reorganization ("POR"), providing the Company additional flexibility to build consensus in completing POR negotiations with its creditor constituents. In particular, Exide continues to advance negotiations of the previously announced non-binding proposal for a POR and preferred equity capital commitment received from the unofficial committee of senior secured noteholders and intends to file a POR promptly following finalization of negotiations with its stakeholders. To provide maximum flexibility in its continued POR negotiations, Exide intends to file a motion on or before July 31, 2014 seeking to extend the exclusive period in which to file a POR to December 10, 2014. Exide expects its exclusivity extension request to be heard by the Bankruptcy Court on September 3, 2014. Exide remains committed to emerging from Chapter 11 by December 31, 2014.
Additional details regarding the DIP amendments are available in the Company's 8-K, filed yesterday, available at http://ir.exide.com/sec.cfm.
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, 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.
Factors that could cause actual results to differ materially from these forward looking statements include, but are not limited to, the following general factors such as: (i) the plan proposal referenced herein is non-binding and there can be no assurance that the Company will reach a definitive agreement for a plan of reorganization, (ii) the ability of the Company to develop, prosecute, confirm and consummate the Chapter 11 plan of reorganization, (iii) the potential adverse impact of the Chapter 11 filing on the Company's liquidity and operations and the risks associated with operating businesses under Chapter 11 protection, (iv) the ability of the Company to comply with the terms of the DIP financing facility, (v) the Company's ability to obtain additional financing, (vi) the Company's ability to retain key management and employees, (vii) customer response to the Chapter 11 filing, (viii) the risk factors or uncertainties listed from time to time in the Company's filings with the Securities and Exchange Commission and with the U.S. Bankruptcy Court in connection with the Company's Chapter 11 filing, (ix) the fact that lead, a major constituent in most of the Company's products, experiences significant fluctuations in market price and is a hazardous material that may give rise to costly environmental and safety claims, (x) the Company's ability to implement and fund business strategies based on current liquidity, (xi) the Company's ability to realize anticipated efficiencies and avoid additional unanticipated costs related to its restructuring activities, (xii) the cyclical nature of the industries in which the Company operates and the impact of current adverse economic conditions on those industries, (xiii) unseasonable weather (warm winters and cool summers) which adversely affects demand for automotive and some industrial batteries, (xiv) the Company's substantial debt and debt service requirements which may restrict the Company's operational and financial flexibility, as well as imposing significant interest and financing costs, (xv) the litigation proceedings to which the Company is subject, the results of which could have a material adverse effect on the Company and its business, (xvi) the realization of the tax benefits of the Company's net operating loss carry forwards, which is dependent upon future taxable income, (xvii) competitiveness of the battery markets in the Americas and Europe, (xviii) risks involved in foreign operations such as disruption of markets, changes in import and export laws, currency restrictions, currency exchange rate fluctuations and possible terrorist attacks against U.S. interests, (xix) the ability to acquire goods and services and/or fulfill later needs at budgeted costs, (xx) general economic conditions, (xxi) the Company's ability to successfully pass along increased material costs to its customers, (xxii) recently adopted U.S. lead emissions standards and the implementation of such standards by applicable states, and (xxiii) the Company's ability to resume operations at its Vernon, California recycling facility.