Exide unsecured creditor ACR III objects to plan, claims insolvency

By Sarah Lizee

Olympia, Wash., Oct. 13 – Exide Holdings, Inc.’s second amended joint Chapter 11 plan drew an objection from ACR III Edison Holdings LLC, which claims that the debtors are administratively insolvent, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

ACR III was a buyer under a stock and asset purchase agreement among Exide, Atlas Capital Resources III LP and other buyers.

ACR III said the debtors have not shown that they have sufficient cash to pay, or reserve for, a working capital adjustment owed to ACR III that was approved as a part of the purchase price under the sale order and is an administrative expense claim.

“As a result, the debtors are administratively insolvent, and they cannot confirm their plan under section 1129 of the Bankruptcy Code,” the objection said.

ACR III said it hopes to negotiate a commercial resolution with the debtors, but any resolution can’t be reached in time for the Oct. 15 combined hearing under the terms of the sale transaction.

In the alternative, ACR III requested that the court order an adjournment of the combined hearing to permit all the parties in interest to negotiate a confirmable plan.

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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