Exide reaches agreement with banks, unsecured creditors

New York, Jan. 22 - Exide Technologies, Inc. said it has reached agreement on a new reorganization plan with its steering committee of pre-petition secured lenders and the official committee of unsecured creditors.

The plan, announced in the U.S. Bankruptcy Court for the District of Delaware, cover the principal terms of a consensual restructuring.

Exide said it will work with the two committees to finalize the terms. It added that the two committees will be co-proponents of the plan when it is filed with the court.

The agreement is subject to definitive documentation, court approval and support in voting from creditors.

Right at the end of last year, bankruptcy court judge Kevin Carey refused to confirm the Princeton, N.J. battery maker's previous reorganization plan.

He largely sided with objections from creditors including agreeing that the plan undervalued the company. He also noted that unsecured creditors voted overwhelmingly against the plan.

The court ordered the parties in the case to restart negotiations and to report back at a hearing on Jan. 22.

Exide filed for Chapter 11 on April 15, 2002.

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