Battery maker Exide Technologies and some of its U.S. subsidiaries have filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
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.
"Over the past several months, we have made a number of difficult yet necessary operational changes that have exhibited positive results. We are now taking the next step to resolve our financial challenges and focus on addressing our balance sheet issues," said Craig Muhlhauser, president and chief executive officer.
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.
Exide said that it has arranged for $415 million in new financing. The new financing, subject to Court approval, provides assurance that Exide will be able to continue to run its operations and serve its customers in a normal manner.
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.
"Over the past several months, we have made a number of difficult yet necessary operational changes that have exhibited positive results. We are now taking the next step to resolve our financial challenges and focus on addressing our balance sheet issues," said Craig Muhlhauser, president and chief executive officer.
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.
Exide said that it has arranged for $415 million in new financing. The new financing, subject to Court approval, provides assurance that Exide will be able to continue to run its operations and serve its customers in a normal manner.
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