Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware approved the first day motions of Exide Technologies, which filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code earlier this week. The first day motions will help facilitate continued operations in the ordinary course of business while the company operates in Chapter 11.
As part of the court’s approval of first day motions, Exide Technologies received authorization from the court to, without interruption:
- Pay employees in the usual manner and to continue their health and welfare benefits programs
- Continue to manufacture and deliver product to customers
- Pay suppliers for goods and services provided to the company post-petition
The court also approved on an interim basis the $40 million in debtor-in-possession financing Exide Technologies received from a group of lenders, including certain of its existing noteholders. This DIP financing will provide sufficient liquidity to support ongoing operations in North America for the duration of the sale process and restructuring.
The court will hold hearings on June 18 to consider the final orders regarding Exide Technologies’ first day motions, including the final approval of the DIP financing.
“The court’s approval of these critical first day motions is an important first step, allowing us to continue supplying high quality energy storage solutions to our customers and honor our commitments to our stakeholders while pursuing a value-maximizing sale of our North America, EMEA and Asia-Pacific operations,” Tim Vargo, chairman, president and CEO of Exide Technologies, said.
As previously reported, Ankura is serving as financial advisor, Houlihan Lokey is serving as investment banker and Weil, Gotshal & Manges is serving as legal counsel to Exide Technologies.
Exide Technologies is a provider of stored electrical-energy solutions for the transportation and industrial markets.