Battery manufacturer and recycler receives extension to submit reorganization plan.
The battery manufacturing firm Exide Technologies
, headquartered in Milton, Georgia, has received approval of an amendment to its debtor-in-possession (DIP) credit agreement. The amendment provides an extension of Exide’s deadline to file its plan of reorganization (POR) from May 31 to June 30, 2014. The company requested the change to give stakeholders more time to evaluate the terms of the POR.
Exide filed for bankruptcy protection June 10, 2013 for its U.S. operations, including its GNB Industrial Division. Exide’s international operations were excluded from the filing.
“Exide and its advisors believe that it is prudent to provide the unofficial committee of secured noteholders and the official committee of unsecured creditors additional time to review and consider the company’s revised five-year business plan submitted to them earlier this month,” says Robert Caruso, president and CEO of Exide Technologies. “In connection with this expectation, we believe it would be beneficial to extend the May 31 milestone date to submit the POR under our DIP financing by an additional 30 days.”
The amendment also increases the company's quarterly and rolling four quarter capital expenditure limits to $36 million and $120 million, respectively.
“Exide continues to invest in its business, and this amendment to the DIP supports our commitment to ongoing improvements in our operations and facilities,” Caruso adds.
The company has been pressured by state and federal regulators over its secondary lead smelter in Vernon, California. The U.S. Environmental Protection Agency recently accused the battery recycling facility of violating federal limits on lead emissions on more than 30 occasions between September and April of this year.