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| Prospect News home > News index > List of issuers E > Headlines for Exide Technologies, Inc. > News item |
Exide court allows creditor settlement reducing claim by $7.6 million
By Kali Hays
New York, Sept. 23 – Exide Technologies, Inc. received approval of a settlement with claimant Pacific Chloride Inc. (PCI), its affiliates and insurance companies related to a 2011 property fire, according to a Monday order with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, insurance companies included in the settlement are ACE American Insurance Co., Zurich American Insurance Co., National Union Fire Insurance Co. of Pittsburgh, Great Lakes Reinsurance (UK) plc, Allianz Global Risks US Insurance Co., XL Insurance America, Inc., allied World Insurance Co. Ltd. and Westport Insurance Corp.
PCI is the former landlord for property Exide leased in Shreveport, La., that was subject to a fire in January 2011, according to the settlement motion.
Exide was reimbursed for losses submitted to the various insurers in March 2013, but PCI argued that under the policies it was also an insured party and due reimbursements for damage to the owned property which the insurers denied.
As a result of the settlement, the insurance parties have agreed to pay PCI a total of $4.95 million and in turn PCI will reduce its claim against Exide by $7.6 million.
Furthermore, all parties have agreed to release any claims related to damage caused by the fire.
Upon filing the settlement, Exide said that the settlement is a favorable result for the company as it resolves “a significant portion” of PCI’s total claim and allows for the avoidance of litigation costs that would arise from its objection to the claim.
Exide Technologies, a Milton, Ga.-based maker and recycler of lead-acid batteries, filed for bankruptcy on June 10, 2013. Its Chapter 11 case number is 13-11482.
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