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EXIDE BANKRUPTCY UPDATE: Exide gets approval from lenders for extension of its debtor-in-possession credit facility’s maturity date to March 31, 2015

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Exide Technologies Receives Approval From Lenders to Extend DIP Financing Maturity Date

 

 MILTON, Ga., Oct. 10, 2014 (GLOBE NEWSWIRE) — Exide Technologies (OTCQB:XIDEQ), a global leader in stored electrical-energy solutions, announced today that the Company has received all necessary approvals from its lenders, thereby extending its debtor-in-possession (DIP) credit facility’s maturity date to March 31, 2015, subject to the terms and conditions thereof. The extension provides Exide and its noteholders additional time to complete negotiations regarding a Plan of Reorganization that would allow the Company to emerge from Chapter 11 substantially in its current form – operating across all business segments. Exide is working toward a proposal that would pay or re-finance the existing DIP facility and provide additional capital to fund its reorganization.

“The approval of the DIP amendment is a positive step forward for Exide as we continue pursuing a Plan of Reorganization and negotiations with our noteholders,” said Robert M. Caruso, President and Chief Executive Officer of Exide Technologies. “We appreciate the confidence of all of our stakeholders and thank our customers, suppliers and employees for their continued loyalty as we focus on our exit from Chapter 11.”

Approval of other elements of the amendment will be considered by the bankruptcy court at an October 31 hearing.

Additional details regarding approval of the DIP amendment can be found in the Company’s 8-K, filed today with the U.S. Securities and Exchange Commission, at http://ir.exide.com/sec.cfm.

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TAKEN FROM FROM AN EXIDE TECHNOLOGIES NEWS RELEASE 

 

 “No bankruptcy court approval is required for the maturity date extension; approval of other elements of the amendment will be considered by the bankruptcy court at an October 31 hearing.

“While Exide and its noteholders remain primarily dedicated to reorganizing and emerging from Chapter 11 through a Plan of Reorganization, the Company and its Board of Directors also intend to explore other strategic alternatives should the parties be unable to reach agreement for a reorganization structure by November 17, 2014”

 

Milton, Georgia – (September 30, 2014) – Exide Technologies (OTCQB: XIDEQ), a global leader in stored electrical-energy solutions, announced today that the Company is seeking approval from its lenders for an extension of its debtor-in-possession (DIP) credit facility’s maturity date to March 31, 2015. This extension would provide Exide additional time to complete negotiations with its noteholders around a stand-alone Plan of Reorganization.

Exide already has obtained consent to the maturity extension from JPMorgan, the DIP credit facility’s agent bank, along with support from holders of a substantial percentage of the DIP facility’s term loans. Exide expects to receive approval of the amendment from the balance of its lenders by next week. No bankruptcy court approval is required for the maturity date extension; approval of other elements of the amendment will be considered by the bankruptcy court at an October 31 hearing.

The Company announced previously that it had received a Plan of Reorganization proposal from certain noteholders holding a substantial portion of the principal amount of its senior secured notes and DIP term loans and continues to negotiate with the noteholders regarding a modified version of that proposal that would allow Exide to emerge from Chapter 11 substantially in its current form – operating across all business segments. Exide is working toward a modified proposal that would pay or re-finance the existing DIP facility and provide additional capital to fund its reorganization. The proposed maturity extension allows additional time to complete those negotiations.

“The extension of the maturity date of the DIP financing allows us to pursue the stand-alone Plan of Reorganization with increased financial flexibility,” said Robert M. Caruso, President and Chief Executive Officer of Exide Technologies. “It also supports our ability to capitalize on the restructuring and cost containment improvements we have achieved so far in Chapter 11 while negotiations continue with our noteholders.”

While Exide and its noteholders remain primarily dedicated to reorganizing and emerging from Chapter 11 through a Plan of Reorganization, the Company and its Board of Directors also intend to explore other strategic alternatives should the parties be unable to reach agreement for a reorganization structure by November 17, 2014.

“Our ability to support our customers and suppliers during our reorganization process has been of critical importance to us, and this amendment provides the wherewithal to continue meeting those commitments. We appreciate the continued support of our customers, suppliers and employees as the Company works to finalize our exit from Chapter 11,” added Caruso.

Additional details regarding the DIP amendment can be found in the Company’s 8-K, filed today with the U.S. Securities and Exchange Commission, at http://ir.exide.com/sec.cfm.

CLICK HERE TO READ RELEASE

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