Exide Technologies entered into an amended and restated plan support agreement ("Amended PSA") with holders of a majority of the principal amount of Exide's senior secured notes.
The Amended PSA allows Exide additional time to negotiate the terms of a commitment to backstop the second lien convertible notes to be offered to certain senior secured noteholders pursuant to Exide's proposed plan of reorganization ("POR") previously filed on November 17, 2014. A number of senior secured noteholders already have indicated their intent to provide substantial backstop commitments subject to, among other things, Exide obtaining the commitments to backstop the rights offering that will, in turn, provide the liquidity needed to fund the business plan upon which the POR is based.
Under the Amended PSA, which is substantially similar to the plan support agreement entered into on November 4, 2014, the date after which a party can terminate its participation under the Amended PSA if a backstop commitment has not been agreed to, has been extended from December 10, 2014 to January 12, 2015. Exide expects to continue to negotiate with various senior secured noteholders in an effort to obtain the remaining backstop commitments. However, there can be no assurances that Exide will receive these additional commitments. In the event that Exide is successful in pursuing the POR path, its goal is to emerge from Chapter 11 by March 31, 2015.
As contemplated under the Amended PSA and as previously announced, Exide is continuing to pursue a dual path. In addition to the POR process, Exide is pursuing a sales process and soliciting third-party bids for a potential sale of some or all of its businesses. The Company has received a number of initial indications of interest from third parties in connection with the sale process. Exide will continue to develop these proposals as an alternative to the POR in an effort to maximize estate value.
Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's global business groups provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.