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Exide Technologies Receives Approval for DIP Credit Agreement Amendment

May 29, 2014, 07:28 AM
Filed Under: Bankruptcy

Exide Technologies, a global leader in stored electrical-energy solutions, announced it has received approval of an amendment to its Debtor-in-Possession (DIP) credit agreement.

Principally, the amendment provides an extension of Exide's deadline to file the Plan of Reorganization (POR) from May 31 to June 30, 2014. The company requested this change to give stakeholders more time to successfully evaluate the terms of the POR.

"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," said Robert M. Caruso, President and Chief Executive Officer 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 quarterly and rolling four quarter capital expenditure limits to $36 million and $120 million, respectively, as well as expands the limits on factoring from €75 million to €100 million and permits subsidiaries domiciled in additional countries to engage in factoring arrangements.

"Exide continues to invest in its business, and this amendment to the DIP supports our commitment to ongoing improvements in our operations and facilities," added Caruso.

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.

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