MILTON, Ga., June 11, 2013 /PRNewswire/ -- Exide Technologies, (Nasdaq: XIDE), a global leader in stored electrical solutions, announced today that it has received U.S. Court approval of a variety of motions that will support the Company's operations as it proceeds with its restructuring, including interim approval of its $500 million Debtor-in-Possession (DIP) financing agreement with JP Morgan Chase , N.A. designed to facilitate and ensure the continued uninterrupted operation of Exide's global business.
The Honorable Judge Kevin J. Carey authorized the Company to access up to $395 million of the DIP Financing Facility – the full $225 of the ABL revolving credit facility and $170 of the $275 term loan facility. It is contemplated that certain of the current holders of the Company's 8.625% Senior Secured Notes due February 1, 2018 will become lenders under the DIP Financing Facility. The Company's current asset based lending facility with outstanding obligations of approximately $160 million, will be paid off in full as a part of the new funding. The DIP financing and cash generated from operations will be used to support the Company's global operations during the course of these proceedings. A hearing to consider final approval of the DIP financing is scheduled on July 11, 2013 at 10:00 am EDT.
In addition to the financing, the Company also received authorization to continue its employee wages and benefits according to their existing plans, ensuring that employees will continue to be paid according to schedule. The Company also received authorization to honor certain prepetition obligations to customers and to continue other customer programs including warranties, rebates, returns, refunds, exchanges, adjustments, promotions, credits, guarantees and all such other similar policies, programs and practices of the Debtors in the ordinary course of business on a post-petition basis.