Exide Technologies Files For Reorganization

Automotive and industrial battery maker Exide Technologies, Inc. has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company said that it elected to file for reorganization because it offered the most efficient way to restructure its balance sheet and access new working capital while continuing to operate in the ordinary course of business. According to the company, operations outside of the U.S. are not included in the filing and will not be adversely affected.
Exide said that its heavy debt burden, caused largely by a debt-financed global acquisition strategy and the costs of integrating these acquisitions, combined with the current economic conditions has made it necessary for the Company to file for reorganization to address its financial leverage and debt burden.
Exide said it has requested, and expects to receive Court approval to pay employee salaries, wages and benefits in the normal course of business, as well as continue to meet customer demands and supply products as usual.