According to the U.S. Bankruptcy Court docket, the Court issued an order approving Exide Technologies’ (I) entry into a plan support agreement and (II) (A) entry into a backstop commitment agreement, (B) payment of related fees and expenses and (C) incurrence of certain indemnification obligations. As previously reported, “Holders of a majority of the principal amount of the Company’s senior secured notes also entered into an amended and restated plan support agreement memorializing their support for the Plan, which contemplates de-leveraging the Company by approximately $600 million. The Plan also includes a rights offering to certain holders of senior secured notes (together with oversubscription rights) of up to $175 million in second lien convertible notes. The Plan would allow Exide Technologies to emerge from Chapter 11 protection substantially in its current form, operating across all of its existing business segments. Proceeds from the rights offering, together with availability under a new exit revolving credit facility, are expected to provide the Company with estimated pro forma liquidity at exit of at least $225 million and be used to fund the Company’s five-year business plan after emergence.”
If the Plan is not consummated, the Company has been informed by holders of a majority of its post-petition term loans that they intend to pursue an acquisition of all or substantially all of the Company’s assets through an alternative credit bid transaction. The Company emerged from a previous bankruptcy in 2004, making this proceeding a “Chapter 22.” Read more about XIDE’s current Chapter 11 case.