Exide Technologies first-day motions, interim DIP access granted

By Wendy Van Sickle

Columbus, Ohio, May 21 – Exide Technologies said first day motions to help facilitate its operations while in Chapter 11 and interim access to $40 million of debtor-in-possession financing were approved by the U.S. Bankruptcy Court for the District of Delaware, according to a news release Thursday.

As part of the court's approval of first day motions, Exide may continue to pay employees in the usual manner and to continue their health and welfare benefits programs; continue to manufacture and deliver product to customers; and pay suppliers for goods and services provided post-petition.

The DIP financing will provide sufficient liquidity to support ongoing operations in North America for the duration of the sale process and restructuring, the company said.

The court will hold hearings on June 18 to consider the final orders regarding Exide's first-day motions, including the final approval of the DIP financing.

Exide Technologies is a Milton, Ga.-based maker and recycler of lead-acid batteries. The company filed bankruptcy on May 19 under Chapter 11 case number 20-11157.

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