Exide Technologies announced it is seeking approval from its lenders for an extension of its debtor-in-possession (DIP) credit facility’s maturity date to March 31, 2015. This extension would provide additional time to complete negotiations with its noteholders around a stand-alone plan of reorganization.

Exide already obtained consent to the maturity extension from JPMorgan, the DIP credit facility’s agent bank, along with support from holders of a substantial percentage of the DIP facility’s term loans. Exide expects to receive approval of the amendment from the balance of its lenders by next week. No bankruptcy court approval is required for the maturity date extension; approval of other elements of the amendment will be considered by the bankruptcy court at an October 31 hearing.

The company announced previously that it had received a plan of reorganization proposal from certain noteholders holding a substantial portion of the principal amount of its senior secured notes and DIP term loans and continues to negotiate with the noteholders regarding a modified version of that proposal that would allow Exide to emerge from Chapter 11 substantially in its current form – operating across all business segments. Exide is working toward a modified proposal that would pay or re-finance the existing DIP facility and provide additional capital to fund its reorganization. The proposed maturity extension allows additional time to complete those negotiations.

“The extension of the maturity date of the DIP financing allows us to pursue the stand-alone plan of reorganization with increased financial flexibility,” said Robert M. Caruso, president and CEO of Exide Technologies. “It also supports our ability to capitalize on the restructuring and cost containment improvements we have achieved so far in Chapter 11 while negotiations continue with our noteholders.”

While Exide and its noteholders remain primarily dedicated to reorganizing and emerging from Chapter 11 through a plan of reorganization, the company and its board of directors also intend to explore other strategic alternatives should the parties be unable to reach agreement for a reorganization structure by November 17, 2014.

“Our ability to support our customers and suppliers during our reorganization process has been of critical importance to us, and this amendment provides the wherewithal to continue meeting those commitments. We appreciate the continued support of our customers, suppliers and employees as the Company works to finalize our exit from Chapter 11,” added Caruso.

Exide Technologies produces and recycles lead-acid batteries.

Previously on abfjournal: JPMorgan Agents Exide DIP Amendment, July 30, 2014