Exide Technologies (Princeton, NJ), a producer of lead-acid batteries, announced that it was advised by its independent auditor, PricewaterhouseCoopers LLC, that its report on Exide's consolidated financial statements as of and for the fiscal year ended March 31, 2005, will contain a "going-concern qualification." The company understands that the qualification will be expressed due to concern about its ability to meet the financial covenants for the 2006 fiscal year in its credit agreement, as amended.
The going-concern qualification in the company's audit report will result in a default under the company's credit agreement. The company is working with the agent for its bank group to obtain a waiver of this default, but there can be no assurance that it will be able to obtain such a waiver. The company will not be able to make further borrowings under its credit agreement until such a waiver is obtained.
