Exide Seeks Chapter 11 Bankruptcy Protection

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    NEWSLETTERS

    Battery maker Exide Technologies is seeking Chapter 11 bankruptcy protection as it attempts to restructure its U.S. business.

    Battery maker Exide Technologies is seeking Chapter 11 bankruptcy protection as it attempts to restructure its U.S. business.

    The Milton, Ga., company said it plans to continue to operate globally during its reorganization.

    Exide Technologies makes batteries for vehicles and also provides stored electrical energy services for industrial applications.

    Exide said a highly-leveraged balance sheet has limited its ability to invest in its businesses, and unprecedented increases in product costs have hurt its balance sheet. Those increases have been driven mainly by the North American market price for scrap lead.

    Exide's voluntary petition for Chapter 11 protection filed on Delaware prevents debt collectors from collecting amounts owed by the company.

    Exide said it has negotiated $500 million in financing that will help cover operating expenses after the filing.

    Around 130 workers were laid off in Frisco after the battery maker closed one of its battery recycling plants in the area in Nov. 2012. The plant closed after a long battle with residents over air and ground pollution concerns. The company struck a $45 million deal with the City of Frisco to close operations at the plant last year.