Just a day after announcing that it was entering Chapter 11 bankruptcy, battery-maker Exide Technologies received interim U.S. court approval of a $500 million debtor-in-possession financing agreement with JP Morgan Chase N.A.
The fresh capital will help Milton, Ga.-based Exide continue "uninterrupted operation of its global business."
Only Exide Technologies’ U.S. operations including its GNB Industrial Division are included in the bankruptcy filing. The company’s international operations are excluded from the filing, and Exide said it plans to continue to operate globally without interruption during the reorganization.
The filing came after Exide was forced to suspend operations at its battery recycling plant in Vernon, Calif., over alleged hazardous waste violations. The company obtains the bulk of the lead used in manufacturing batteries from its recycling operations, it stated in the bankruptcy filing.
In addition to the financing, the company also received authorization to continue its employee wages and benefits according to their existing plans, and 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,” the court said.