Exide Technologies (Princeton, NJ) announced that it has filed a plan of reorganization with the US Bankruptcy Court for the District of Delaware. Under the proposed plan, which is subject to certain creditor approval and confirmation by the Bankruptcy Court, Exide will emerge from Chapter 11 with dramatically reduced debt and a reorganized capital structure. The key elements of the company's proposed plan include a debt-for-equity exchange and the cancellation of all existing common stock.
Exide Technologies Chairman, Chief Executive Officer and President Craig Muhlhauser said, "The filing of our plan represents a significant milestone on our path toward emergence from Chapter 11. We are confident that the plan provides Exide with a strong financial foundation for the future. We continue to be on track to emerge from Chapter 11 before the end of the year."
The company said that it continues negotiations with lenders on the terms of exit financing. Additionally, the company said that it is preparing and expects to file its Disclosure Statement with the Bankruptcy Court in the near term.
