Heavy-duty truck battery maker Exide Technologies Inc. today announced that it and certain of its U.S. subsidiaries have filed voluntary petitions for Chapter 11 bankruptcy. 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," president & CEO Craig Muhlhauser said. "We are now taking the next step to resolve our financial challenges and focus on addressing our balance sheet issues."
Exide said that its heavy debt burden, caused largely by a debt-financed global acquisition strategy and the costs of integrating these acquisitions, and current economic conditions has made the move necessary. It has also arranged for $580 million in financing, subject to court approval, which will assure suppliers get paid.
Exide said it 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.
The company's operations outside of the U.S. are not included in the filing and will not be adversely affected, Exide said.