MILTON, Ga., Feb. 4, 2015 (GLOBE NEWSWIRE) -- Exide Technologies (OTCQB:XIDEQ) (www.exide.com) ("Exide" or the "Company"), a global leader in stored electrical-energy solutions, announced today that the U.S. Bankruptcy Court for the District of Delaware approved the adequacy of the Company's disclosure statement (the "Disclosure Statement") with respect to its Plan of Reorganization ("POR"). With the Court's authorization, Exide will promptly commence the process of soliciting approval of the POR. The hearing to confirm the POR is scheduled for March 27, 2015.
The POR, which is supported by two of the Company's principal creditor constituencies—the official committee of unsecured creditors (the "UCC") and certain members of the unofficial committee of senior secured noteholders (the "UNC")—contemplates significant improvement to the Company's balance sheet by, among other things, deleveraging the Company by approximately $600 million.
The Bankruptcy Court also approved the related Second Amended Plan Support Agreement, Backstop Commitment Agreement, Rights Offering Procedures, and a tripartite global settlement agreement entered into with the UCC and certain members of the UNC (the "Settlement Agreement"). Under the Settlement Agreement, the UCC agreed, among other things, to affirmatively support confirmation of the POR. As previously announced, the Exide Second Amended Plan Support Agreement provides the Company with support for its POR from holders of a majority of the principal amount of Exide's senior secured notes. Moreover, certain of those holders, through the Backstop Commitment Agreement, have committed to backstop up to $160 million of second lien convertible notes to be offered pursuant to a $175 million rights offering.
"This is a significant and meaningful step forward on the Company's path toward a consensual plan confirmation process and intended emergence from Chapter 11 by March 31, 2015," said Robert M. Caruso, President and Chief Executive Officer of Exide Technologies. "I thank our customers and suppliers for standing by us during the Chapter 11 process and acknowledge our employees for their hard work as we focus on the completion of our restructuring and begin a new era for Exide as a better capitalized Company positioned for growth."
Bankruptcy Court filings, including the orders approving the Disclosure Statement, the Second Amended Plan Support Agreement, the Backstop Commitment Agreement, the Rights Offering Procedures, and the Settlement Agreement are available at http://www.exiderestructures.com. Interested parties may direct questions about the Exide bankruptcy using the following toll-free numbers: 888.985.9831 for U.S. suppliers or 855.291.0287 for all other groups.
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) there can be no assurance that the Company will satisfy the conditions of the PSA or the backstop commitment agreement or that the Bankruptcy Court will approve them, (ii) there can be no assurance that the U.S. Bankruptcy Court will approve the Settlement, (iii) the Company may be unable to confirm and consummate the Chapter 11 plan of reorganization, (iv) the risks associated with operating businesses under Chapter 11 protection, (v) the ability of the Company to comply with the terms of the DIP financing facility , (vi) 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, (vi) the Company may be unable to implement and fund business strategies based on current liquidity, (viii) the Company's substantial debt and debt service requirements may restrict the Company's operational and financial flexibility, as well as imposing significant interest and financing costs, (ix) the litigation proceedings to which the Company is subject could have a material adverse effect on the Company and its businesses, (x) competitiveness of the battery markets in the Americas and Europe, (xi) 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, (xii) the ability to acquire goods and services and/or fulfill later needs at budgeted costs, (xiii) regulatory risks and uncertainties could affect the Company's businesses or profitability, or (xiv) general economic conditions.