Exide Technologies filed with the U.S. Bankruptcy Court a motion seeking entry of an order authorizing and approving a stipulation with the California Department of Toxic Substances Control (CDTSC). The motion explains, “Notwithstanding Exide’s success in convincing the Los Angeles Superior Court to provisionally reopen the Vernon Facility, because of continuing litigation risks Exide engaged in extensive arm’s-length negotiations with CDTSC in an attempt to fully and finally resolve the issues connected with the allegations made by CDTSC in relation to the Suspension Order. These negotiations resulted in a consensual resolution, and Exide now presents the Stipulation – which establishes Exide’s commitment to ongoing environmental compliance – to this Court for approval.” Under the stipulation, Exide Technologies will continue to take certain measures to ensure ongoing environmental compliance at the Vernon Facility, including replacement of the facility’s storm water system, installation of additional air filtration systems, modification of certain existing filters and the addition of a thermal oxidizer to further reduce emissions. In addition, the Debtor will conduct soil and dust sampling and work with the county health department to offer blood lead testing. The Company will provide CDTSC with financial assurance in the form of a segregated account in the amount of $7.7 million (less any amounts previously spent) that Exide Technologies will set aside to pay for the costs and expenses of work completed under the stipulation. In exchange, CDTSC will agree that the stipulation constitutes full settlement of the allegations and provide Exide Technologies a covenant not to sue. In particular, the CDTSC will, among other things, dismiss the order for temporary suspension with prejudice and waive its right to any further proceedings on the accusation.
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.